Post demonetisation,
banks were flush with funds and yet credit did not pick up. Blame was on the
surging NPAs that decimated the risk appetite of the Banks. The whole country
is now aware that NPAs of corporate borrowers is the villain of the piece. Banks
for once stopped blaming the priority sector for the unsustainable level of
NPAs.
PSBs have their liberal
share and therefore FM announced recapitalization of the order never seen
before at Rs.2.11trillion. To call these reforms is a travesty of judgement. Average
tax paying person has to bite the bullet. It has the potential for moral
hazard.
