"Rising NPAs in PSU banks are a concern. Here in India, especially in PSBs, not in private banks, we have growing NPAs. Hopefully, it will stabilize. It has become somewhat an issue," he said at an event here.
Non-performing assets (NPAs) or bad loans of PSU banks rose by 28.5 percent from Rs 1.83 lakh crore in March 2013 to Rs 2.36 lakh crore in September 2013.

Referring to the economy, Rajan said though India is going through a period of turmoil, growth appears to be stabilizing. Having touched a decade-low of 4.5 percent in 2012-13, India's economic growth rate is projected to improve to 4.9 percent in the current financial year ending March 31.
The issue of rising NPAs was also flagged by ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar, who attributed it to external factors.

She said the banking sector had successfully overcome the 2008 crisis and will improve further with the revival in the economy.
"The economy has bottomed out. There is a need to bring back investment to revive the economy," she said, adding that there was a need to improve the decision-making environment.


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