Best of BS Opinion: Hope fades for PSBs, a future without promoters & more

Here are the best of Business Standard's opinion pieces for Wednesday

Public sector banks (PSBs) are reported to have written off about Rs 8 trillion worth of loans over the last seven years, which is more than twice the capital infused by the government in the same period. This is clearly an unsustainable position, and the government cannot perpetually keep infusing large sums of capital in the banking system. It has been issuing recapitalisation bonds over the last few years because of budget constraints, but this medium also has limits. In this context, our lead editorial notes that since there are limitations to the extent PSBs can be reformed and are likely to remain a drag on government finances, the government should speed up their privatisation. Read here

In supporting Navjot Singh Sidhu in Punjab, the Congress has created more confusion over what it stands for, argues Vir Sanghvi

India’s corporate landscape is changing, and the economy is set to change with it, notes Amit Tandon
 

Quote

“Owing to the second wave, the Indian economy is likely to mirror a similar trend seen in FY21, where the first half of the financial year is weaker and the second half is significantly stronger”

HDFC Chairman Deepak Parekh