Dear govt, bond with investors; just throwing cash won't help state lenders

With the rupee near an all-time low, letting the rupee slump by printing more of it isn't a politically palatable option for Modi's team ahead of next year's election

Each new day brings a fresh band-aid in India’s efforts to patch up its banks. Last week’s highlight was an egregious plan to dump moth-eaten IDBI Bank Ltd. into the lap of a state-run life insurer. This week began with a proposal for a national asset management company, or bad bank, as if 21 state-run lenders weren’t enough bad banks.

Missing from discussions around these quick fixes is a crucial question: How will bond vigilantes react to the sound of cans being kicked down the road? 
 

For the first time in almost seven years, the benchmark Indian government bond has rounded