RBI Governor Shaktikanta Das has said, the banking sector is on "course to recovery" as the afflicting non-performing assets recede, but state-run lenders need reforms in governance.

The RBI Governor Shaktikanta Das said in his foreword to RBI's half-yearly financial stability report (FSR) in Mumbai yesterday, even though the current NPA levels are high, stress tests done by the RBI have pointed to an improvement in the ratio in future.