In a statement, P Chidambaram, the finance minister, stated that the tactical methods used by banks to recover their bad loans, is the main reason for the rise because of the softness in their tactical methods. He also agreed that there have been recovery departments separately set up by banks.
State Bank of India's Chairman, Arundhati Bhattacharya stated that in the attempt to recover the loans which are non-performing, there has been an aggression shown by the banks, however, it is but natural that there is a lag in the recover, however nothing comes very quickly. Rate of monetary policy
On December 18, the announcement would be made by the RBI, in regards to the 2013-14 mid quarter RBI monetary policy. The repo rate is expected to go up by 25 basis point as per market players because of the slow growth of GDP and the rise of inflation.