RBI deputy SS Mundra says state-run lenders may need more capital | business-news | Hindustan Times
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RBI deputy SS Mundra says state-run lenders may need more capital

The RBI this week had identified 12 of the largest loan defaulters and said creditors must pursue bankruptcy proceedings against them.

business Updated: Jun 16, 2017 14:35 IST
A Reserve Bank of India (RBI) logo is seen at the entrance gate of tts headquarters in Mumbai, India June 7, 2017.
A Reserve Bank of India (RBI) logo is seen at the entrance gate of tts headquarters in Mumbai, India June 7, 2017. (Reuters)

Reserve Bank of India (RBI) deputy governor SS Mundra said on Friday state-run lenders may need more capital beyond the budgeted total allocation of Rs 700 billion ($10.84 billion) in the four fiscal years through March 2019.

Mundra, addressing reporters in the sidelines of a banking event in New Delhi, also said there was no specific timeline set by the central bank to identify additional loan defaulters on which bankers would need to start bankruptcy proceedings.

The RBI this week had identified 12 of the largest loan defaulters and said creditors must pursue bankruptcy proceedings against them.

Credit rating agencies have said India will ultimately need to inject more capital into state-run lenders, which hold the bulk of troubled loans in India, to make a dent in reducing the country’s $150 billion in stressed debt.