RBI has to ensure NPAs are not swept under the carpet: Deepak Parekh

Interview with Deepak Parekh, chairman, HDFC

The banking sector is expected to see a lot of action after the government’s initiative to tackle the non-performing asset (NPA) problem through the NPA Ordinance. Deepak Parekh, chairman, Housing Development Finance Corporation, tells Joydeep Ghosh in an interview that the Reserve Bank of India (RBI) is not overextending its reach as a regulator nor is it being expected to take commercial decisions. As the banking regulator, its job is to ensure stability in the system. Edited excerpts:

Is the NPA Ordinance a silver bullet or just an incremental measure?

Much as one would wish, there is no silver bullet. Resolution