RBI governor Urjit Patel. He said the balance sheets of most state-run banks are not healthy enough to take large haircuts—or the reduction in asset value that follows the resolution of an NPA—without an infusion of fresh capital. “NPA resolution would necessitate a higher re-capitalisation of these banks,” he said. Patel’s comments came at a summit on insolvency, hosted by the Confederation of Indian Industry, and chaired by Jaitley. Banks could raise capital from the market, dilute the government’s stake, get more capital from the government or opt for mergers.

Source: The Telegraph August 19, 2017 09:11 UTC