The problem of non-productive assets (NPAs) confronting banks for over a decade is now a widely debated topic. This has also been discussed on this website extensively under a series of articles with the captain NPA the Unbridled Virus and an Emerging Challenge to Indian Banking System. These articles represent an analytical view of the malaise seen from inside the system through a bottom-to-top appraoch. The analysis of the problem made was relevant to the period from year 1992 to 1999. Subsequently a review of this problem consequent to a number of correctional/recovery measures effected for over a decade i.e. as at the beginning of the year 2003-04 was also described in another series of articles to bring the issue up to date

Herein we seek to present the problem from a different perspective as presented by an eminent and most competent authority on the subject, the Deputy Governor of RBI. RBI formulates its perception of the problem at a macro level from the comparative statistics relevant to the banking system compiled and consolidated by it out of data and reports submitted by the individual banks. However it is also to be pointed that major efforts in addressing this problem in the past had always been at the initiative and efforts of RBI, which have initiated several measures to redress the gravitity of the emerging challenge through a number of measures. It is therefore considered necessary that students in banking should also view the presentation of the problem as being diagnoised and redressed by RBI.

The original occasion for the presentation of this article was a seminar organised by Confederation of Indian Industry (CII) for an interaction on NPA between the members representing the Indstry with the Central Bank. The speech covering a comprehensive policy/approach statement on NPA was presented on that occasion

The contents of the speech are presented in four articles with titles as given in the margin with links to access respective modules.