Indian banks are in for a ₹20-trillion hole10 min read . Updated: 17 Jul 2020, 06:00 AM IST
- A pile of bad loans is expected to clog the financial system by the year-end. Does anyone have a revival plan?
- It’s time the government got around to the idea of diluting its stake in public sector banks (PSBs) up to 33%. This will allow PSBs to raise capital from the financial market
Unlike many central bank governors who have tried hard to stay tight-lipped during the pandemic, Shaktikanta Das, the governor of the Reserve Bank of India (RBI), did not beat around the bush in his latest speech. At a banking conclave last weekend, he said: “The economic impact of the pandemic… may result in higher non-performing assets (NPAs) and capital erosion of banks. A recapitalization plan for public sector banks (PSBs) and private banks has, therefore, become necessary."
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