Two bad ideas are being propagated so vigorously that, as so many times in the past, good people are considering adopting these bad ideas
Rating agency CARE Ratings said, given that bank credit growth would be higher in FY22 than in FY21, incremental credit would be Rs 10-11 trillion
Here's a selection of Business Standard opinion pieces for the day
Bad bank will only kick the can down the road
Without beefing up the regulatory framework, moral hazard may outweigh advantages, say experts
Tune in to this podcast to learn which big schemes could get more funding and which the axe, and if setting up multiple bad banks would be a good idea, among other things
Economic Affairs Secretary Tarun Bajaj also said the government has recapitalised public sector banks and continue to pump in capital as per requirements
We need to be clear about what 'recovery' means
Here are the top business headlines on Wednesday morning
The IBA had proposed a national-level asset reconstruction company (ARC) owned by the government with its capital infusion worth Rs 10,000 crore
Krishnamurthy Subramanian also says India's sovereign rating being maintained and stable outlook by S&P is good news, considering India wants to list its sovereign bonds on global indices
Earlier also, may be more than 15 years ago, there was a private ARC which was stopped for misuse of the system
Banking lobby group Indian Banks' Association (IBA) is expected to take the proposal, which is on the lines of the Sashakt panel recommendations, to the finance ministry this week.
Here's a selection of Business Standard opinion pieces for the day
The idea of a bad bank has been around for some time now though it was abandoned at one point
The whole point of having a bad bank is to discover and recover the steady-state economic value of assets that may be currently depressed
The NPA problem and the effect on bank balance sheets has not improved despite the Insolvency and Bankruptcy Code (IBC) process
Urgency in reversing the rise in stressed assets with banks is universally admitted reservation
Fitch said that similar mechanisms have been used to help clean up banking systems in the US
Banks recorded stressed loans of $133 billion, or 12.34% of their total loans, as of last September