RBI's red flag

Recognition of NPAs in PSBs must be swift

The Reserve Bank of India (RBI) on Monday released its latest Financial Stability Report. In his foreword, RBI Governor Shaktikanta Das was straightforward in warning of the effects of the pandemic: That, in spite of “relatively sound capital and liquidity buffers” built up after the last crisis in 2008, the period of the pandemic might result in “balance sheet impairments and capital shortfalls”. The fine print of the report bears out Mr Das’ concern. There is little doubt that the primary task of the banking sector over the forthcoming year will be to deal with the fallout on already stressed