PRANAB-NPA 2 LAST

When asked about segments where there were maximum bad When asked about segments where there were maximum bad loans, Mittal said 7-8 sectors including power and distribution companies (discoms), civil aviation and textiles are under large stress. He said real estate lending by banking sector has been restricted for quite sometime. "So the real estate sector is managing its resources by not borrowing from the banking sector, but outside the banking sector" he added. The Secretary emphasised that Indian banking system was much more robust than in Europe. "To say that Indian banking sector is at a difficult stage is not fair. It is much sounder than what is there in the European banking system," he said. The Secretary further said NPAs are generated in the banking system and there was no scope for "window dressing". "NPA management is something we are working together... NPA is across the board and we are trying to manage it, but nothing to panic". While addressing the function, the Finance Minister, said net NPAs of BOI have increased from Rs 1,945 crore (0.91 per cent) in March 2011 to Rs 3,656 crore (1.47 per cent) in March 2012. However, neither Mukherjee nor Mittal named the banks which have been advised by the RBI on NPAs.

Source:ibnlive.in.com