MUMBAI The Reserve Bank of India's move to clean up balance sheets of commercial lenders is not aimed at reducing the risk-taking appetite of company owners, Governor Raghuram Rajan said on Wednesday.
"We should not in any way reduce risk-taking in the economy," Rajan said in an interview to ET Now television.
The central bank has been urging banks to proactively clean up their balance sheets, including accounting for potential stressed assets. Rajan said this exercise is intended to put key stalled projects back on track and was not meant to penalise promoters.
He also said that the central bank will not stand in the way of revealing the names of defaulters if there was a "public case" for it after the Supreme Court allowed regulators to do so.
(Reporting by Mumbai treasury team; Editing by Biju Dwarakanath)
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Published Date: Feb 03, 2016 13:24 PM | Updated Date: Feb 03, 2016 13:24 PM