Experts including the chief economic advisor have suggested radical steps like creation of a bad bank and he has given a justification for that.,, 

That bad bank is very similar to asset reconstruction company except that it is run by the government. Now I am not saying, it is a very good proposal but you have just expanded, allowed FDI, liberalised the whole ARC business and therefore you have a lot of ARCs which have become active. In the last three-four months you have a lot of debtors who are coming up and whose assets are going that way. I think let us experiment this solution. The bad bank suggestion is on the table. The fact that it is not mentioned in mybudget speech does not mean it does not make sense to us but it is very much a subject on the agenda. 

But do you think you have underprovided for recapitalisation of banks by only giving 10,000 crore? 

I have provided in accordance with what was said in the Indradhanush Scheme – Rs 25,000 crore there and Rs 10,000 here. But I have also said if more money is required, I am willing to give it out to banks. 

No comments:

Get Update By Email