'Interest rate cut would depend on inflation'
Talking about the deteriorating asset quality of the banks, Chakrabarty said, "NPA is high, the situation is disturbing but it is not alarming. At some point of time our NPA was 12 per cent."
Non-performing assets (NPAs) of the banks have been on the rise for past several months due to slowdown in economy. The Gross NPAs of some public sector banks, including State Bank of India, Punjab National Bank and Central Bank of India, have crossed 4 per cent of total assets at the end of September, 2012.
"We are asking banks to manage NPA portfolio better and there is enough scope for that," Chakrabarty said.
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