4  BIS Review 33/2007  Comparison with other countries Several balance sheet and profitability indicators suggest that the Indian banking sector indicators are moving towards global benchmarks (Table 4). (ii)  Resolution of NPAs  The Narasimham Committee I had suggested the creation of an Asset Creation Fund to which the public sector banks would transfer the non-performing assets with certain safeguards.
In the meantime, it is of great importance that all other inflationary impulses in the economy, such as excessive rises in government expenditure or real wage rises in excess of productivity increases, and of course, a continuation of the excessive rates of increase in the monetary aggregates, must be avoided.