Sources said that the FSR view “may not have been to the comfort of the government, and, therefore, they have to come to an agreement.”
The Financial Stability Report (FSR), which was scheduled to be released on Wednesday, has been delayed as the government wants to “consult” the Reserve Bank of India on the stance of the report. The new date for the release of the report has been tentatively fixed on January 11 next year.
The discussion will be over the FSR’s stance on the future trend in non-performing assets (NPAs) and that of the government’s, which sources said, is relatively benign.
This divergence in views need to be sorted out as it has a bearing on the recapitalisation (recap) amounts needed for state-run banks. With government finances already stretched, it can still put more pressure if the central bank were to take a more hawkish
First Published: Dec 31 2020 | 06:10 AM IST