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The mounting problem of bad loans of banks cannot be resolved by their simple recapitalisation and options like raising private capital for state-run banks need to be considered to deal with the issue, the RBI said on Friday.
"I wish to propose that we deal with the ailing public sector banks in creative ways instead of just propping them up with state aid," said Reserve Bank of India Deputy Governor Viral Acharya addressing an event by the Federation of Indian Chambers of Commerce and Industry (FICCI) Ladies Organisation.
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The mounting problem of bad loans of banks cannot be resolved by their simple recapitalisation and options like raising private capital for state-run banks need to be considered to deal with the issue, the RBI said on Friday.
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