Containing the rising stressed assets in Indian banks

Abstract

To enhance recovery, one strategy could be to incentivise the top PSB management to improve the recovery record RBI Governor Raghuram Rajan recently observed that large borrowers in the country, by defaulting wilfully, rob the taxpayers, and that obviously makes new funding of projects costlier. Rajan concluded that the need is to apply the current laws in a timely and fair manner, establish new institutions such as bankruptcy courts and, most importantly, change the mindset so as not to ‘lionise’ the wilful defaulters as captains of industry. The issue of lenders and borrowers in the banking industry especially assumes significance in the face of extending financial inclusion involving savings of the innocent and sometimes illiterate and vulnerable population. Read more at: https://www.financialexpress.com/opinion/containing-the-rising-stressed-assets-in-indian-banks/17062/