Sealing the Victory of the Corporate Sector

......Let me now turn to the background of the report of the RBI’s Nayak Committee report on public sector banks (PSBs) and the likely consequences of the acceptance of its recommendations. There was some illusion among Indian politicians and publicists that India would be immune to the global economic crisis beginning with the bankruptcy of Lehman Brothers. But once the economic crisis hit India, businesses began to fail and default on bank loans and non-performing assets of banks piled up. But paradoxically enough, analysts of the Indian banking system became concerned, especially from 2012 about the burgeoning loans of Indian corporate houses from domestic, especially PSBs..........

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