Letter to BS: Inject enough capital into PSBs in line with Basel norms

The Insolvency and Bankruptcy Code is of paramount importance and as such it must be strengthened with amendments to ensure swift resolution of bad assets

A strong banking system capable of meeting all financial requirements is essential to support the economy that is on the path of growth and social development. The price of deposits and loans are crucial for the growth of household savings, credit expansion and investment. The source of funds to create credit has to come mainly from the deposits, and therefore, the price of the deposit products need to be attractive to face the competition from other savings products available in the market.

 In order to promote investments, banks have to lend at affordable rates. Striking a proper balance between the two