How to make India’s bad bank workable9 min read . Updated: 22 Feb 2021, 10:13 AM IST
- Past experiments have failed because of design issues. Malaysia’s ‘Danaharta’ shows a viable way ahead
- If stressed loans are transferred at too low a value, the recovery might deliver supernormal profits to buyers. This could be especially problematic if the buyers are in the private sector
MUMBAI : Given the large overhang of non-performing assets in our financial services ecosystem, there is a strong case for a one-time clean-up via a “bad bank" Asset Reconstruction Company (ARC), as announced in this year’s Union Budget.
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