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News RBI

  • Mar 08, 2013
  • Reserve Bank of India becomes extra vigilant about banks’ infrastructure exposure

    The Reserve Bank of India is seeking detailed information on lenders' exposure to the infrastructure sector, a measure aimed at reducing sticky loans. According to some bankers, the regulator has sought the information —the exposure to power sector in particular — as part of its annual inspection of banks. "They asked for the bank's exposure to infrastructure," a senior banker, who did not want to be named, said. "The inspectors also made note of the bank's risk management system to identify early signs of stress in loan accounts." The RBI did not respond to ET's emailed query on the development. The central bank is concerned as some companies in the power sector are stuck in litigation. Also hurting corporates is the ban on mining in some states, cancellation of environmental clearances and delays in fresh approvals, structural issues in sectors such as power, and obstacles to land acquisition.

    Source - http://economictimes.indiatimes.com