RBI may hike NPA provision ratio if needed: Chakrabarty

.......Speaking about NPAs of banks, Chakrabarty attributed a majority of them to poor administration and risk management practices of lenders and went to the extent of terming it as 'non-performing administration.' "I call NPA as non-performing administration. We have to make the administration functioning," Chakrabarty, who oversees banking supervision at RBI, said. The RBI Deputy Governor said the "change in the administration" has to come in a slew of areas which would be internal as well as external. Lending rates would have been far lower if banks had got their NPAs down, Chakrabarty said. "It is a burden on the people who are paying the money. People forget that if NPAs would have been 1%, banks' lending rates would have been 4% lower with the same inflation, and same repo rate. "That's why we should tackle NPAs -- not only for the survival of the system, but also for the survival of the customer," Chakrabarty said............

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