India needs to collect and declare credible data on stressed assets, identify sectors and companies where these are accumulated and be transparent in insolvency resolution before jumping to a new mechanism

RBI's database, reports and other evidence show India is credit surplus; large industrial houses have high debt stress, and that easy credit poses serious macro-financial risks to the economy

At 21% recovery, IBC has performed worse than UPA-era debt recovery mechanisms panned for inefficiencies. The idea of a bad bank is also likely to fail if political interference and poor bank governance continue

Little attention to direct income support, health and education deprivations, and revival of small businesses will keep the demand and production of goods and services depressed in FY22

Move to set up an ARC/AMC as a proxy for bad bank and a Development Financial Institution is aimed at taking the load of risky assets from banks. It is easier said than done

India Stock Market News Updates Today: Earlier today, Sensex rose above the psychological key level of 50,000 and Nifty neared 14,700

Union Budget 2021 highights: A new centrally sponsored scheme, PM Atma Nirbhar Swasth Bharat Yojana, will be launched with an outlay of about Rs 64,180 crore over six years

Sensex, Nifty Highlights on Budget day, February 1: Almost all the sectors closed in green territory today, rising in the range of 3-6%, except for pharma index

Union Budget 2021 Highlights: Congress leader P. Chidambaram said that the government had only marginally raised health funding, which when adjusted to inflation becomes nil

Budget 2021: The Reserve Bank of India, in a recent report on upcoming banking trends in the country, had pointed out the sector is set for an asset quality shock

The current capital adequacy levels in PSBs do not look too bad, but the current regulatory forbearance post Covid hides the real picture

Misdirected stimulus that relies heavily on liquidity infusion when demand is depressed and incentivising loan defaults by routinely writing off NPAs threaten financial stability and economic recovery

How the FM can make it a 'never before' Budget. Top experts weigh in

The stock price of the private lender opened higher at Rs 17.70 today and gained to day's high of Rs 17.81 on BSE. Later, the stock erased early gains and fell 1.3% to hit an intraday low of Rs 17.49, against the last close of Rs 17.73

Allowing big industrial houses in the banking sector has its own set of challenges

RBI panel's proposal to allow big corporates/industrial houses to own and run banks and NBFCs is contrary to RBI's own earlier stand, economic logic and historical evidence of multiple economic crises caused by reckless private financial sector players

The merger of Lakshmi Vilas Bank, an old private sector bank from India, with a foreign bank like Singapore-based DBS Bank is expected to bring its own set of challenges

The Mudra portfolio of the largest bank in the country with over 20 per cent market share in banking assets indicates a similar situation in other public sector banks

Credit downgrade means trouble for affected companies, whereas any stress in the corporate sector will be immediately reflected in the banking industry's delinquencies

Government's plan to infuse Rs 20,000 crore into public sector banks puts no pressure on the Centre, but the lenders have to be ready with enough capital if matters go south