January 28, 2009 12:50:57 am
Reserve Bank of India Governor D Subbarao,on Tuesday,expressed hope that banks will be convinced of lending money to industries that had pledged to invest in Gujarat during the Vibrant Gujarat Global Investors Summit 2009.
Addressing a video conference on the third quarter review of monetary policy 2008-09,he said the atmosphere in the state was conducive to lending to industrial units.
The RBI Governor admitted that banks had their own constraints and were free to take credit decisions on their own. In this situation,they could only be convinced to cut lending rates up to a certain point because they were also to look after the non performing assets ratio.
He said there was ample liquidity in the system,but admitted that NPAs were going to be a problem for banks in times to come,which will be painful.
Best of Express Premium
But all this would not come in the way of lending decisions of the banks to industrialists wanting to invest in Gujarat to fulfil their investment commitments to the tune of Rs 12 lakh crore,he said,adding that the investors’ summit was a success and industries signing MoUs deserved financial support.
He said there was further scope for banks to cut lending rates,as there were some banks that had not reduced interest rates.
According to him,Indias turnaround was going to be sharp and safe and the year 2009-10 would be more challenging. He,however,refused to predict the challenges that might come up.
🗞 Subscribe Now: Get Express Premium to access our in-depth reporting, explainers and opinions 🗞️
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.