What is a Bad Bank and does India really need one?

Описание: The Indian government's ongoing actions to clean up the banking system are necessary. However the experience with private ARCs or Asset Reconstruction Companies, the precursor to the publicly funded Bad Bank hasn't been encouraging. See whether other countries have been successful and ask the question; will this clean-up too be a waste of taxpayer money?
#badbank #arc #assetreconstructioncompanies #ibc #npa #publicsectorbanks

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Sources:

BusinessToday
Budget 2021: How bad bank model of ARC, AMC, AIF would work; Anand Adhikari; January, 2021
Rebooting Economy 65: IBC has failed; will a bad bank succeed?; Prasanna Mohanty; February, 2021
Recapitalisation amount in 5 years 9% higher than m-cap of 18 PSBs; Sept 5, 2019

Research paper
Indian Banks: A Time to Reform; co-authored by Viral Acharya & Raghuram Rajan; September, 2020

RBI Master Circular
Prudential Norms on Capital Adequacy, Basel I Framework; Sudarshen Sen; June, 2015

Ministry of Finance
Union Budget Speech; Nirmala Sitharaman; February, 2021

The Deccan Herald
Union Budget 2021 commits bad bank, recap and PSB divestment; Furuquan Moharkhan; February, 2021
How trustworthy are the bad loan numbers of banks?; Vivek Kaul; February, 2021

The Hindu BusinessLine
ARCs are not the solution to bad loan mess; S Kalyanasundaram; June, 2018

The Indian Express
Explained: The arguments for and against bad bank; Sunny Verma & George Mathew; January, 2021
‘Bad bank’ idea: Govt guarantee for ARC paper likely; Sunny Verma; February, 2021

Financial Express
Banks win Rs 40,000 crore back in one stroke; SBI set to recover this much from Essar Steel IBC punch; Sushruth Sunder; November, 2019

BloombergQuint
How the idea of a bad bank made a comeback; Vishwanath Nair; May, 2020
Bad bank: An idea from the good ol’ banking book; Ira Duggal; October, 2016

India Today
Rising bad loans may hit hard in 2021, warns RBI report; January, 2021

CNN News18
IMF’s Gita Gopinath reveals reasons for India’s rebound to 11.5% growth projection, endorses Bad bank idea; January, 2021

Business Standard
BoB NPAs surge six-fold, Indian Bank sees four times rise in six-years: RTI; May, 2020

Economic Times
Bad Bank likely to get nod soon, with rider; Dheeraj Tiwari; Apr 28, 2021
How Good is the Bad Bank? Abheek Barua; Apr 1, 2021
Bad Banks could help PSUs focus on growth; Saloni Shukla; Feb 9, 2021
What is a National Bad Bank and how will it work; Feb 9, 2021
Haircuts: A way to address NPAs in Indian banking system; Gayatri Nayak; February, 2017
Talks underway to privatise some public sector banks, Dinesh Narayanan & M C Govardhana Rangan; March, 2020
Bad Bank: a resolve or respite for the India Banking System; Garvita Goyal; May, 2020
What is capital adequacy ratio for banks?; December, 2019
The ABCD of Bad Banks; Omkar Goswami; February, 2021
IBA starts identifying stressed loans for proposed bad bank; Saloni Shukla; February, 2021

Times of India
Bad bank to get ₹2L cr of defaulting cos’ loans; Mayur Shetty; Apr 29 2021
Fraudulent loans cannot be sold to bad bank; RBI; Mayur Shetty; Mar 8, 2021
The ABCD of Bad Banks; Omkar Goswami; Feb 12, 2021
Don’t let the bad boy billionaires become bankers; Swaminanthan S Ankleshwar Aiyar; November, 2020

Mint
Why insolvency pros are living on the edge; Shayan Ghosh; Apr 9, 2021
Past experiments have failed because of design issues. Malaysia’s ‘Danaharta’ shows a viable way ahead; Ananth Narayan; Feb 21, 21
Bad bank is a good idea; Shayan Gosh & Nasrin Sultana; January, 2021
Let a bad bank lighten our Sisyphean load of bad loans; Diva Jain; November, 2020
Let the banks of India remain off limits for industrial houses; Mythali Banusmithi; November, 2020
LVB deal showcases new M&A battlefield; Amol Aggarwal; November, 2020
The whys and hows of bank recapitalisation; Tamal Bandyopadhyay, Achintan Bhattacharya; Jan 10, 2018

Mumbai Mirror
Sale of defaulters' sugar mills come under ED scanner; Abhishek Sharan; Nov 2, 2020

bit.ly/ 3dp89tF
Indian Banks: A Time to Reform? Viral V Acharya & Raghuram G Rajan; Sept 21 2020