Banking

Bad Banks: Can it resolve India’s NPA Crisis?

#Banking_Brief_91

The idea of setting up a bad bank to resolve the growing problem of non-performing assets (NPAs), or loans on which borrowers have defaulted, is back on the table. With commercial banks set to witness a spike in NPAs, or bad loans, in the wake of the contraction in the economy as a result of the Covid-19 pandemic, Bankers and distressed asset managers have welcomed the move to set up a bad bank for toxic loans.


Here’s all you need to know about bad banks and how they work and how it can resolve India’s NPA crisis.

Credits: Vrushali JainAkash GauravAditya Patil and Naman Adwani

#NIBM#VittArth#banking#RBI#economy

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