Relatively high proportion of non - assets (NPAs in public sector banks) performance is a concern. All net, the 1996/97 average of 9 percent for the year 2000-2001 should be reduced below 5 percent. As one way to reduce NPAs, recovery of loans for the establishment of more courts and tribunals covering all states.

Some banks have very high NPAs. These banks will be encouraged on an experimental basis, asset reconstruction companies to acquire banks for NPAs yield, their realizable value and special relationship with the bank are held by the Exchange. Asset reconstruction company contributed the maximum value of the transferred assets are on the recovery of attention.

Our bank, the Reserve Bank, now 8 percent required minimum capital adequacy ratio for banks from 9 percent in March 2000 and 31 lies in strengthening the health of 10 per cent as soon as possible. The Reserve Bank asset classification, income recognition announcement of further improvement in prudential norms, risk weights, etc.