Bad Bank: Solution or more problems?

One sticky problem that is giving nightmares to the policy makers and PSBs is the Non-Performing Assets (NPAs). The government and the RBI have been demonstrating seriousness and commitment towards resolution of NPAs. Various possible ideas for resolution of NPAs have been discussed, debated and some of them have been tried.  One such idea that has been discussed time and again is the formation of a Bad Bank. The idea of a bad bank is to transfer all the non-performing assets (NPAs) of bank/s into a separate entity — a bad bank — thereby cleaning the banks’ balance s.....

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