It may be tempting to believe that last year’s bankruptcy law reforms will soon begin to ease the pain at banks by encouraging the quick sale of assets of troubled borrowers. The proceeds from such sales, however, would likely amount to very little in comparison with the mammoth scale of troubled assets. According to a joint study by Assocham and Crisil, gross NPAs in the banking system are estimated to increase to ₹9.5 lakh crore by March 2018, from ₹8 lakh crore a year earlier. ______________. So the RBI in the coming months should continue to push banks, both public and private, to promptly recognise the stressed loans on their portfolios. Incidentally, the Prime Minister last week laid the blame for bad loans on the previous government. While it is quite true that the present bad loans crisis has been a long time in the making, the problem of lax corporate governance, which has plagued public sector banks and contributed in no small measure to the present crisis, still remains largely unaddressed by the government.
It may be tempting to believe that last year’s bankruptcy law reforms will soon begin to ease the pain at banks by encouraging the quick sale of assets of troubled borrowers. The proceeds from such sales, however, would likely amount to very little in comparison with the mammoth scale of troubled assets. According to a joint study by Assocham and Crisil, gross NPAs in the banking system are estimated to increase to ₹9.5 lakh crore by March 2018, from ₹8 lakh crore a year earlier. In that case, write-offs recognising losses may be the most honest and practical way to deal with the bad loans problem. So the RBI in the coming months should continue to push banks, both public and private, to promptly recognise the stressed loans on their portfolios. Incidentally, the Prime Minister last week laid the blame for bad loans on the previous government. While it is quite true that the present bad loans crisis has been a long time in the making, the problem of lax corporate governance, which has plagued public sector banks and contributed in no small measure to the present crisis, still remains largely unaddressed by the government.
Who serves as the scheme operating agency for the Indian Forest & Wood Certification Scheme?
What additional percentage has the Union Cabinet approved for Dearness Allowance and Dearness Relief for Central Government employees and pensioners?
Which is the most peaceful country in the world according to the Global Peace Index 2023?
What does the CBRE report reveal about the demand for industrial and logistics spaces in India in 2023?
Which Indian city from Madhya Pradesh has been added to UNESCO's Creative Cities Network in the 'Music' category?
According to the Ministry of Finance, the total digital payment transactions volume increased from 2,071 crore in FY 2017-18 to _______ in FY 2022-23 ...
_____________ has tied up with Paytm for card tokenisation to protect data of the cardholders.
Which payment company has launched a stock broking platform Share. Market that went live with stocks and exchange trading funds, as it expanded its rang...
Who won the Austrian Grand Prix Formula One Championship title 2023?
India’s first underwater metro East-West Metro Corridor project will be completed by the year _____.