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Prem Shankar Jha: Lower interest rates or die

What will happen if policy interest rates are brought down to the point where they halve the current 11 per cent-plus average cost of borrowing?

When Reserve Bank of India Governor Raghuram Rajan tightened RBI rules last April to make commercial banks 'provision', i.e. set aside, more funds against bad debt in their balance sheets, he let a long-dormant genie out of the bottle. This is the extent to which the banking system's capacity to fund economic growth has been eroded by the six-year slowdown in the Indian economy. The adjusted balance sheets for the country's 39 publicly traded banks (private, nationalised and the SBI) show that NPAs, i.e debt on which the banks are not able to recover their interest and ...

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Business Standard
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Business Standard

Prem Shankar Jha: Lower interest rates or die

What will happen if policy interest rates are brought down to the point where they halve the current 11 per cent-plus average cost of borrowing?

Prem Shankar Jha 

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Prem Shankar Jha When Reserve Bank of India Governor Raghuram Rajan tightened RBI rules last April to make commercial banks 'provision', i.e. set aside, more funds against bad debt in their balance sheets, he let a long-dormant genie out of the bottle. This is the extent to which the banking system's capacity to fund economic growth has been eroded by the six-year slowdown in the Indian economy. The adjusted balance sheets for the country's 39 publicly traded banks (private, nationalised and the SBI) show that NPAs, i.e debt on which the banks are not able to recover their interest and ...

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Prem Shankar Jha: Lower interest rates or die

What will happen if policy interest rates are brought down to the point where they halve the current 11 per cent-plus average cost of borrowing?

What will happen if policy interest rates are brought down to the point where they halve the current 11 per cent-plus average cost of borrowing? When Reserve Bank of India Governor Raghuram Rajan tightened RBI rules last April to make commercial banks 'provision', i.e. set aside, more funds against bad debt in their balance sheets, he let a long-dormant genie out of the bottle. This is the extent to which the banking system's capacity to fund economic growth has been eroded by the six-year slowdown in the Indian economy. The adjusted balance sheets for the country's 39 publicly traded banks (private, nationalised and the SBI) show that NPAs, i.e debt on which the banks are not able to recover their interest and ... image
Business Standard
177 22

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