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After $32 bn bailout, officials plan ways to prevent another NPA crisis

Arun Jaitley, India's finance minister, has vowed the recapitalisation will be accompanied by not only bank reform, but also mergers of weak banks with stronger rivals

Reuters  |  New Delhi 

Weeks after India unveiled a $32 billion bailout of state-run banks, top finance ministry officials and bankers will meet this weekend to discuss lending reforms designed to prevent another bad loans crisis. Bankers and policymakers fear India could be throwing good money after bad with the capital injection announced last month, unless it tightens lending rules and institutes governance reforms to insulate banks from political pressure. "After bailing out the banks with taxpayer money, the government wants to ensure that such a problem doesn't happen again," said a ...

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First Published: Fri, November 10 2017. 20:27 IST