RBI blames India Inc for bad bank loans
"Again non-performing assets (NPA) is creation of the corporate sector, a major part of the NPA. You borrow from banks, you don't pay them in time. They becomes NPA in the books of the banks. I pitty on bankers," he said at an event organised by Assocham here.
"So why you are not able to pay back because your cost is more, income is less. You don't pay back the money. This can be possible only with the improvement in the productivity and efficiency," he said.
In a worsening trend of companies failing to meet their financial obligations, banks have seen a rise of up to 85 per cent in bad loans since the beginning of the current fiscal.
In the first two quarters of 2012-13, banks referred a record number of 74 CDR cases, involving a total debt amount of Rs 40,000 crore for restructuring.
Chakrabarty further said if corporates are able to bring down the risk perception of banks, interest rate could be reduced in their benefit.
"If you (corporates) can bring down risk in the economy, if the bank perceive that there is no risk, your interest will become 9-10 per cent," he said, adding that if 5 per cent NPA becomes 1 per cent then this can be done".
"Today what is happening is a person who is sincere, who is honest,
