but also for the survival of the customer," Chakrabarty said.
According to RBI data, the gross NPA ratios of the public sector banks stood at 3.3 per cent for the fiscal ended March 2012, up from 2.4 per cent a year ago, while the same for private lenders dropped to 2.1 per cent from 2.5 per cent.
A recent report by rating agency Icra warned the bad assets book of banks are set to cross Rs 2 lakh crore mark, or about 3.8 per cent of the total asset book, this fiscal.
Similarly, the report said the uncovered NPAs or net NPAs, despite the higher credit provisioning, increased from 1.1 per cent at end March 2011 to 1.5 per cent at end June 2012.
This led to an increase in net NPAs in relation to net worth from 10.5 per cent at the end of March 2011 to 14.4 per cent at the end of June 2012.
Chakrabarty said although the RBI is not worried about NPAs at present, "that does not mean we should be complacent."
"Banks should improve their credit management, the follow-up skills, recovery skills, and their systems which must help them in recovery," Chakrabarty said.
On the rising cases of corporate debt restructuring (CDR) in the current round of economic gloom, he said there is nothing bad with the method "if CDR can give life to the borrower".
"If the banks do an appraisal, re-appraisal and they are happy that the unit can come out then only restructure. Otherwise, (its) better for the account to die," he added.
"CDR is not a concern, CDR converted into an NPA is a concern," Chakrabarty said.