Sitharaman Tuesday lauded the RBI’s efforts in steering the bailout of Lakshmi Vilas Bank by allowing a local unit of Singapore’s DBS Group Holdings Ltd. to buy the failed lender.
The withdrawal restrictions have also been lifted. Union Minister Prakash Javadekar said those responsible for deteriorating financial health of the bank would be penalised.
RBI has wisely decided to put Lakshmi Vilas Bank out of its misery. Better still, it’s called upon a foreign institution to take over assets & liabilities.
With no govt-led resolution plan yet, crisis-ridden Lakshmi Vilas Bank could get institutional investor support to raise fund. LIC, Aditya Birla Sun Life Insurance, Indiabulls are among its investors.
The Narendra Modi government is looking at ways to check states’ spending on handouts like free electricity and rations. The first step is to tighten the noose on state borrowings.
Kashmir as a crisis has fallen off our headlines and from the top of our collective minds. Which is precisely the most important change for the better.