Pragmatic solution to NPA issues

Reserve Bank will look at resolving the issue with “skill and creativity” so that growth does not become a victim, he said in his first media interaction since taking charge a month ago. “The non-performing assets situation is an important issue for the RBI. We will deal with the situation with firmness, but also with pragmatism so that the economy does not feel any lack of credit to support the growth in the economy,” Patel told reporters after announcing his maiden policy review. “You must remember that the situation did not happen overnight and therefore will require skill and thoughtful endeavour to resolve,” Patel said, reading out from a prepared statement. He said while the work on identifying an NPA, recording it and reporting the same has been satisfactory, resolution of the stress needs more focus. Acknowledging that five sectors – steel, power, telecom infrastructure and textiles – contribute 61 per cent of total stress in the system, Patel said each of them are very important and hence, calls for “skill and creativity” in dealing with the stressed asset situations.