February 21, 2015 10:03 PM

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RBI deputy governor warns banking sector to brace for higher attrition levels

RBI deputy governor R Gandhi has warned the banking sector to brace for higher attrition as the sector is being thrown open to niche and more private players. Addressing a seminar in Mumbai yesterday, Mr. Gandhi said he foresees the demand for expertise, knowledge and specialisation; adding that in such a scenario, people will be hopping jobs and attrition will be a norm. Talking about inflation, Mr. Gandhi expressed confidence that low inflation will continue leading to a low interest rate regime. On the deteriorating NPAs levels, Mr. Gandhi said RBI has been continuously saying that there can be more slippages in restructured accounts. He said that RBI has been warning banks to look at the entire stressed accounts and not just NPAs.

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