Expressing concern over bad loans Reserve Bank Deputy Governor R Gandhi on Saturday said banks should strengthen their internal credit appraisal systems to minimise the risk of default.
"The final (NPA) figure for March 2014 is yet to be known,while some may view this ratio as reasonable, given the economic conditions prevalent in the country and elsewhere, the total stressed assets in the banking system as at December 2013 was 10.13 per cent of the gross advances of the banks, which is a cause of concern for the Reserve Bank," he said.