Business Standard

Now is the time for a bad bank

The idea of a bad bank has been around for some time now though it was abandoned at one point

Public sector banks
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Illustration by Binay Sinha

Prashant Kumar New Delhi
Indian banking has been going through a rough patch on the asset quality front for many years now. Gross NPAs (GNPAs) of scheduled commercial banks, which used to range between Rs 500 billion and Rs 700 billion in the 2000s, started picking up from the late 2000s and crossed Rs 1,000 billion in the year FY12. Post the asset quality review (AQR) of 2015, GNPA of all scheduled commercial banks (SCBs) increased more than 18 times to reach Rs 10,397 billion as of March 2018 from Rs 566 billion in March 2008. The good thing is that it declined in
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First Published: Oct 31 2019 | 9:16 PM IST

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