Financial sector: The year gone by was tumultuous, but will 2019 be better?

While 2018 was marked by scams, regulatory crackdowns and the RBI-Centre spat, the likelihood of some PSU banks coming out of the PCA framework could boost credit growth in 2019

It began with the unearthing of the fraud perpetuated by Nirav Modi at Punjab National Bank’s Brady House branch in Mumbai, which exposed the lapses in supervision and internal controls at one of India’s largest public sector banks.  

Then, on February 12, 2018, the Reserve Bank of India (RBI) issued a circular mandating lenders to begin the resolution process of any large account, if the borrower had delayed payments by even a single day. Lenders were given a maximum of 180 days to come up with a resolution. In case that didn't happen, banks were directed to initiate insolvency proceedings