BANKING/FINANCE: We are seeing the beginning of a recovery process: Subbarao.

from BUSINESS LINE, October 28, 2009 Mumbai, Oct. 27 - 'Banks tell me that credit will pick up in Q4. That prospect will be a variable in our monetary policy calculations then,' says Dr D. Subbarao, Reserve Bank of India Governor, in a conversation with Business Line. Excerpts from the interview.

Why did the RBI decide to link risk weights of banks' advances to NBFCs financing infrastructure to their credit ratings? For a long time NBFCs have been asking that those who finance infrastructure must be given additional facilities. So we created an additional class of infrastructure NBFCs which have exposure norms like banks. When banks lend to NBFCs, the credit rating of the NBFCs will …