Best of BS Opinion: PMC Bank crisis, stressed financial firms, and more

An expanding scandal involving yet another cooperative bank, yet another realtor and yet another example of dodgy lending without adequate board oversight dominates the opinion pages today. Kanika Datta sums up the views.  

PMC Bank’s implosion may not create systemic instability but the triumvirate of banks/cooperative banks, shadow banks and realty firms can play havoc with the Indian financial system, says Tamal Bandyopadhyay. Read here

The resolution of stressed financial firms is a key bottleneck in the economy. For the larger non-banking financial corporations involving institution debtors, the process under the Insolvency and Bankruptcy code would serve the purpose. But when unsophisticated households come into the picture, a specialised statutory resolution corporation may work better, says Ajay Shah. Read it here

The lead edit explains why the 25 basis point cut in the policy rate is an appropriate call. Read it here

How can we establish the rights of our rivers in an age of growing demand for water and growing risks for climate change insecurity? Sunita Narain sets out a water conservation agenda for India. Read here

Last week, the Jammu & Kashmir Reorganisation Act required corrigenda to correct 52 errors. Such errors in drafting have become commonplace in legislation and can have fateful consequences. The flaws, the second edit points out, lies in the secretive policy decision-making process. Read it here

 

Quote of the day

 

‘The situation in Jammu & Kashmir is normal. People there are happy with the abrogation of Article 370 provision’

 

I&B minister Prakash Javadekar