........I don't think there is a general perception that NPAs are because of wilful defaults. Projects are built on certain assumptions and if they (raw material supply, timely completion and interest rates) change, they impact project quality... and that is what has happened in the last few years. This leads to higher leverage as they are not able to repay because the project is not generating cash.There may be some cases of wilful default, but for banks it is always possible to identify if the external environment or internal capabilities are to blame. It is not difficult to identify a wilful defaulter.......
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
No comments:
Post a Comment