The idea of establishing a bad bank to address mounting NPAs is gaining currency and wrongly so. It is a temporary fix and cannot address deep-rooted problems of PSU banks. Allowing bankruptcy process to work efficiently, permitting new banks, including foreign-owned ones, are better options. Bad bank is bad economics.
Uddhav must forget linguistic politics, its time is over. Instead, focus on governance
Uddhav Thackeray’s statement about incorporating Karnataka’s Marathi-speaking people into Maharashtra was unnecessary and irresponsible. Reorganisation of states on linguistic lines is a settled matter. Politicians must stop misleading people by raking it up. Politics of linguistic identity is a zero-sum game in India today. Maharashtra CM must focus on governance.
Indian politicians must follow world leaders in taking vaccine shot. Will boost faith, remove doubt
From Joe Biden to Benjamin Netanyahu to Joko Widodo, global leaders are taking the lead in Covid vaccine shots, but Indian politicians are conspicuously absent. So are celebrities. Both need to step forward, set an example and boost public confidence in vaccines, especially because of naysayers spreading disinformation and doubt.
The sheer volume of NPAs in the system, which will swell further due to the pandemic, coupled with the percentage of sacrifice lenders will have to sustain, make the setting up of a bad bank impractical. For that matter, few Indian business houses have the financial capacity to bid for stressed assets, the way Piramals have for DHFL. Reliance has deleveraged, something Adanis may be experimenting with as well. Risk appetite is low. 2. As the Edit suggests, issue of fresh licences, creating vibrant new institutions, is the way forward. No aversion to foreign banks. The government should take enlightened, long term decisions, else the inadequacies of the banking system will become a serious constraint to achieving high growth.
My heart tells me some have already quietly taken the Pfizer shot.