Too many questions on bad bank and infra DFI

The headache over recovery of bad loans will be less for bankers now. The Budget says there will be an asset reconstruction company (ARC) and an asset management company (AMC) to consolidate and take over their large bad loans, manage them and sell them to alternative investment funds and other investors. Why do we create a moral hazard by allowing the banks themselves to own a bad bank when there are at least 28 ARCs around? (One more, to be floated by Yes Bank Ltd, is awaiting the regulatory nod.) Except for a few owned by strong investors, most don’t have enough capital to buy s.....

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