Lenders need 'deep surgery': RBI's Rajan

Mumbai

THE head of India's central bank has said the country's lenders may need to perform "deep surgery" to sort out bad loans and clean up their balance sheets.

Reserve Bank of India (RBI) governor Raghuram Rajan, who famously predicted the 2008 world financial crisis, has set Indian banks a deadline of March next year to tidy up their non-performing assets.