–  This development only served to place in sharper focus the concern which I had expressed when times were better over the state of the Bank’s balance sheet and the severe constraints this might place on our ability to conduct monetary policy. It will be recalled that I had advocated dynamic provisioning during the last financial year.
In fact, it is important to note that both the Central Government and the Reserve Bank of India have taken a lot of measures to facilitate fund flow to this sector especially during the recent years.