Coming specifically to the banking sector, I would like to emphasize that this sector plays a very important role in the economic growth of the country, by providing finance to the different sectors of the economy. Though our banking system continues to remain vibrant in terms of capital and profitability, despite the economic downturn, we cannot afford to relax.
While the asset quality of the banking system is under stress, the situation is still manageable. Let me, however, highlight that as per our analysis, the higher NPAs in the banking system are, in a large measure, also attributable to some laxity in lending standards in the benign environment that preceded the Global Financial Crisis.