Of debt and distress

.....Although RBI has realised that banks are not setting aside enough capital to take care of potentially toxic assets and the fact that promoters have got away with too small a sacrifice in the restructuring packages—the observations of a panel set up by it suggest this—there has been little action on this front so far. In any case, tougher norms will help only in the future; for now, the damage has been done...........

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