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RBI's June 7 circular has given enough freedom to banks, says State Bank of India

Updated : June 10, 2019 10:17:16 IST

Sharing his views on the Reserve Bank of India's revised circular on the resolution of stressed loans, Dinesh Kumar Khara, managing director of State Bank of India said that the June 7 guidelines have given enough freedom to banks.

“In this particular (June 7) circular, there is enough elbow room given... one-day default and it has given 30-day time for the bankers to assess the situation... on balance, it has given enough freedom to the banks and also will keep the spirit which was brought in by February 12 circular intact,” said Khara in an interview to CNBC-TV18.

On NBFC front, Khara said, “Some of the NBFCs have started following the corrective path and that is how the situation stands... when it comes to mutual funds, etc., they are also looking are NBFCs."

On asset quality situation, he said, “We are expecting a further pick up going ahead and as a conscious policy we have decided that we will be very closely watching the asset quality and wherever required we will be making the provisions.”
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