RBI may hike NPA provision ratio if needed: K C Chakrabarty

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.