Rajan tells banks to prepare for ‘deep surgery’
RBI governor says banks will have until March 2017 to clean up their balance sheets
Banks in India should prepare to undergo "deep surgery" to cure the maladies on their balance sheets, Reserve Bank of India (RBI) governor Raghuram Rajan said on February 11.
Speaking to a gathering of bankers in Mumbai, Rajan said the banking sector was one of few sickly areas in an economy otherwise "brimming with entrepreneurial zeal".
A major factor behind this, Rajan argued, was the steady build-up of impaired loans on bank balance sheets, which banks have preferred to ignore rather than
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