Banking industry to see write-backs: Official

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Kolkata, Aug 24 (IANS) With resolution of stressed assets, Indian banking sector is expected to see substantial write-backs by end of the current financial year, an official said on Friday.

The resolution is happening under the Insolvency and Bankruptcy Code (IBC), but at a slower space, the official said.

“Indian banking sector is expected to see substantial write-backs by the end of this financial year on account of resolution of stressed assets,” State Bank of India’s (SBI) Group Economic Adviser Soumya Kanti Ghosh said.

Speaking on the falling rupee against dollar, he said sudden appreciation or depreciation would add volatility in the markets.

“The rupee has remained stable over the last three to four years. What is important now is that the depreciation should be orderly. Sudden appreciation or depreciation adds to the volatility in the market,” he said.

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Referring to GDP growth estimates by SBI Research, he said it was expected to be 7.7 per cent in the first quarter and 7.5 per cent for the entire fiscal year.

Speaking on the dual control over public sector banks (PSBs) by the Reserve Bank of India and the government, he said, “The apex bank has enough powers to control them. PSBs are subject to more audits than private banks”.

–IANS

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