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Bank recapitalisation is a must

We need to be clear about what 'recovery' means

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5 min read Last Updated : Jul 24 2020 | 12:00 AM IST

As the exit from the lockdown unfolds — interrupted in many places by the re-imposition of short lockdowns — many speak hopefully of green shoots springing up. Others talk of a V-shaped or U-shaped recovery.

We need to be clear about what “recovery” means. When people talk of a recovery, they mean the reversal of the shrinkage in output that is happening at the moment. If output drops by 5 per cent for the year as a whole after dropping by, say, 20 per cent in the first quarter, that points to a recovery in the next three quarters.

Any sign that

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Topics : Coronavirus Lockdown bad bank Bad loans Bank loans bank recapitalisation

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