Speaking on asset quality concerns surrounding banks, Mundra said that bankers need to learn the right lessons from the past mistakes
According to the deputy governor, a focus on issues such as corporate leverage, high growth ambitions, optimistic projections and lack of equity would help banks in the future.
"While steps are afoot to resolve stressed assets as you all know, it is important for each stakeholder to learn the right lessons," Mundra said.
According to the central banker, it is high time that banks started sharing information among themselves about borrowers, so that they can better track fund flows and avoid any lapses in recovery efforts. Presently, lenders are forced to share information on large credit accounts with the RBI, which then puts together a database that can be accessed by lenders.
Banks must also improve their risk management capability as it is critical to their survival, the deputy governor said.
News Source- BloombergQuint