The Reserve Bank of India Deputy Governor SS Mundra said on Wednesday that banks may demand greater equity from companies that are "highly leveraged".
"For further financing, banks may demand that these companies bring higher equity to correct the leverage," Mundra told reporters on the sidelines of an interactive session organised here by the CII.
According to the Deputy Governor, banks may decide on the debt to equity ratio individually for companies. The RBI will not be micro-managing them, he added.