Tuesday, August 26, 2014

Reconstruction question

.........Bad assets not only eat into internal accruals that might otherwise be used to enhance capital, they also weaken the ability of banks to attract fresh capital from outside. In the Indian context, if the government wants to preserve its majority shareholding in the public-sector banks, it will need to commit an even larger amount of funds because of this. Finding ways to both reduce the burden of existing NPAs and contain their rise in the future has clearly become a regulatory imperative........

No comments: