Levels of corporate debt a 'major concern', says RBI

Reserve Bank of India (RBI) Deputy Governor S.S. Mundra called levels of debt in the domestic corporate sector "a major concern" on Wednesday, while admonishing banks to clean up their bad loans more quickly.

Mundra added leverage levels had risen "very substantially in the last few years in the corporate world", calling it a concern that was also felt globally, at an event in Mumbai for chief financial officers.

The RBI deputy governor also called on banks to move more quickly to recognise bad loans.

"Our simple message is if there is a problem, to recognise it and address it quickly," he said. "Don't pretend and extend."