Besides structural factors like persistent high level of food prices due to rising income level not being matched by increase in productivity, production and distribution of food items, in particular protein/pulses food, the implementation of the seventh Central Pay Commission award, monsoon and the path of commodity prices including crude prices have to be factored in the near term inflation outlook. 17.
There have been discussions in recent times about the stress in banking and corporate balance sheets. In respect of health of Indian banks, the Reserve Bank has taken various steps to address the issue of stressed assets of the banks. After a comprehensive asset quality review, banks have initiated the process of cleaning up balance sheets by March 2017.