Reserve Bank of India today called for recapitalization of state-run banks to help them resolve the NPAs issue in a time-bond manner as bad loans at nine point six per cent of the system is not acceptable.<br/><br/>RBI Governor Urjit Patel said this addressing a National Conference on Insolvency and Bankruptcy: Changing Paradigm, held in Mumbai this morning in presence of Union Minister of Finance Arun Jaitley. <br/><br/>Mr Patel said that gross NPA ratio of the banking system at 9.6 per cent and stressed advances ratio at 12 per cent as of March 2017 is indeed a matter of concern. Saying that the balance sheet of most state-run banks are not healthy enough to take large haircuts, which is a corollary of any bad loan resolution, he called for their recapitalisation. <br/><br/>He said that Government and the RBI are in dialogue to prepare a set of measures to enable state-run banks to shore up the requisite capital in a time bound manner. He added that the government and the RBI are working together to comprehensively address the issue through a multi-pronged approach. <br/><br/>The measures could include a combination of capital raising from the market, dilution of government holding, additional capital infusion by the government, merger based on strategic decision and sale of non-core assets.<br/><br/>The RBI chief also blamed lenders for the mess, saying their poor credit appraisal systems have led to the pile of<br/>bad loans, which tops over nine trillion rupees now.