Moneycontrol
Feb 03, 2016 06:26 PM IST | Source: PTI

March 2017 deadline for balancesheet clean-up is fair: Rajan

"There is a process by which we hope to clean up bank balancesheets. Clean up... for potential losses by March 2017. We think that's a fair span of time by which one can hope this is largely done," he told reporters from wire agencies during an interaction.


Bankers may be complaining that the March 2017 deadline for cleaning up their balancesheets is short, but RBI Governor Raghuram Rajan said it is a "fair span" to complete the work.

"There is a process by which we hope to clean up bank balancesheets. Clean up... for potential losses by March 2017. We think that's a fair span of time by which one can hope this is largely done," he told reporters from wire agencies during an interaction.

Rajan made it clear that provisioning for the potential bad loans is a "moving target", which will keep moving as per movement in bad assets.

RBI has initiated the exercise by identifying specific troubled accounts and asking lenders to classify them as non-performing over the next two quarters.

According to reports, the list runs into 150 accounts. Rajan denied talk of RBI having given any list to banks in this regard.

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