The International Monetary Fund (IMF) said that the banking sector was important for India to support investment and inclusive growth agenda. “Addressing the banking sector balance sheet issues and improving the performance of particular public sector banks is a very important issue for India to support investment and its inclusive growth agenda,” said IMF Spokesman Gerry Rice.
He also said that the authorities have made progress in addressing the stock of non-performing assets and were taking further measures to deal with the flow problem. “These steps include the recognition of these non-performing assets, the resolution framework under the Insolvency and Bankruptcy Code. It’s in an early stage, but we think that’s an encouraging development,” Rice said.