<h1>India's Central Bank Tackles Rising Stressed Assets and Bank Profit Declines with New Asset Quality Measures.</h1> The Deputy Governor of India's central bank addressed asset quality challenges in the banking sector, highlighting rising stressed assets since 2012 and declining bank profits due to increased provisioning for delinquent loans. He attributed these issues to global economic downturns, corporate imprudence, misdemeanors, and bank failings. To address these problems, measures like the creation of a database for financial distress and guidelines for distressed asset management were introduced. The central bank's Asset Quality Review aimed to improve credit discipline. The Deputy Governor emphasized the need for banks and corporates to adopt better risk management practices and suggested potential solutions, including debt restructuring and management changes.