Stressing on the importance of reducing non performing loans to India, IMF has released the Financial Sector Assessment Programme (FSAP) for India.
Anna Ilyina, Division Chief of IMF Monetary and Capital Markets Department, said that bolstering the level of capitalisation was one of the recommendations of the Financial Sector Assessment Programme (FSAP) for India. The level of non-performing loans (NPLs) in India remains high. And the level of the capitalization of some banks, particularly government-owned banks, should be bolstered. There were some steps that were taken by the authorities to boost capital in banks and also to improve governance in state-owned banks that have had some positive impact. There has been some progression, but we would welcome further progress on the non-performing assets in India.