View: Bad bank not an optimum solution to mounting bad loan menace in India

The objective of the bad bank is undoubtedly laudable. It however needs to be subjected to the test of realism and pragmatism. The then RBI governor Mr Raghuram Rajan felt that bad bank creates a moral hazard enabling banks to continue with their reckless lending practices.

from Banking/Finance-Industry-Economic Times https://ift.tt/32oQNcg