Governance Issues in Public Sector Banks and PJ Nayak Committee Report

The banking sector in India is dominated by public-sector banks (PSBs) with government being the majority stake holder in them. In recent years, the Public Sector banks have been suffering with multiple problems of non-performing assets (NPAs), large over-dues; competition, performance, political pressures and so on. In this context, the former RBI governor Raghuram Rajan had […]

Making a Bad Bank a good solution

In the light of the recent idea put forward by the Chief Economic Advisor, Arvind Subramanian, as well as Viral Acharya, the new Deputy Governor of RBI, backed by the Finance Ministry to set up a “Bad Bank”, the question arises as to whether this idea will help in addressing the problem of Non-Performing Assets […]

Public Sector Asset Rehabilitation Agency (PARA)

The Public Sector Asset Rehabilitation Agency (PARA) colloquially called “Bad Bank” is a proposed agency to assume the Non-Performing Assets (NPA) of public sector banks in India and to deal with the recovery of the bad loans. This agency has been proposed in Economic Survey 2016-17. The NPA Problem At end-September 2016, the NPAs of […]

Asset Quality in Banks and various factors affecting it

What do you mean by the “Asset Quality” in Banks? Discuss the macroeconomic factors that impact the asset quality.