The Reserve Bank of India feels the overexposure of public sector banks to the retail sector is not good. Deputy governor N.S. Vishwanathan said the banks must know that it is not necessary that everything is hunky dory in retail. Vishwanathan told an Assocham event that there is a need to ensure that stressed asset buildup is contained so that banks get back to generate adequate internal accruals. Credit growth is more in private sector banks as opposed to the public sector banks and “then you have problem of the state run lenders also going for retail loans, he cautioned.
