Business Standard

Economic Survey 2018: Need complementary reforms to shrink unviable banks

Govt, RBI step up efforts to address issue

RBI directive on auditors to benefit second-tier firms
Premium

Anup RoyDev Chatterjee Mumbai
Addressing the twin balance-sheet (TBS) challenge through effective resolution of stressed assets and bank recapitalisation should remain on the top agenda of the government next year, said the Economic Survey report on Monday.

The TBS refers to stress in the balance sheets of companies and the resultant stress on the balance sheets of banks that had lent to these companies. The government and the Reserve Bank of India (RBI) have stepped up efforts to address the issue by recapitalising banks and forcing defaulting companies to undergo liquidation. However, liquidating firms and forcing the management to leave won’t be enough, the survey

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 30 2018 | 5:23 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com