RBI Deputy Governor S.S. Mundra: No timeline on identifying additional loan defaulters

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Reserve Bank of India (RBI) Deputy Governor S.S. Mundra said on Friday state-run lenders may require more capital beyond the budgeted total allocation 700 billion rupees ($10.84 billion) in the four fiscal years through March 2019.

Mundra, addressing reporters in the sidelines of a banking event in New Delhi, likewise said there was no specific timeline set by the central bank to recognize additional loan defaulters on which bankers would need to begin bankruptcy proceedings.

The RBI this week had identified 12 of the biggest loan defaulters and said creditors must pursue bankruptcy proceedings against them.

Credit rating organizations have said India will ultimately need to inject more capital into state-run lenders, which hold the bulk of troubled loans in India, to make a dent in reducing the nation’s $150 billion in stressed debt.

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