NEW DELHI: RBI today said everything is not hunky-dory about public sector banks‘ retail lending and underlined the need for improving credit appraisal and monitoring.
“If you look at the credit growth you do see that there is more growth in private sector as opposed to the public sector banks and then you have problem of the public sector banks also going for retail. It is not necessary that everything is hunky dory in retail,” RBI Deputy Governor N S Vishwanathan said.
“And you do not want to create a leverage in household… what we need is that a proper understanding of risk and mitigation of the risk so that banks are lending to right parties… we believe that information asymmetry is the main bottleneck in some credit appr…
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