RBI Governor Cautions Banking Sector Against Excessive Lending To Infra Sector

02 April, Mumbai

In view of the rising bad assets, RBI Governor Raghuram Rajan Thursday cautioned the banking sector against excessive lending to the infrastructure sector.

Addressing the 80th anniversary celebrations of RBI, Mr. Rajan said that infrastructure loans should not override the overall financial stability, which is key to national security.

Rajan rather expressed the need for developing new sources of risk capital to finance the country’s infrastructure needs with moderate amount of debt. The non-performing assets – NPAs of banks stood at over Rs 3 lakh crore as on December 2014.