Bad bank could help PSBs focus on growth, say experts
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Synopsis
According to experts, systemic corporate stress is in the range of Rs 5-6 lakh crore, out of which Rs 4 lakh crore is with public sector banks.
MUMBAI: A bad bank could be a boon for public sector banks saddled with a disproportionate share of the bad debt, which is restricting their ability to raise growth capital from the markets, experts tracking the banking sector said.
The Union budget proposed an asset reconstruction company (ARC) to take over stressed debt from banks. However, with the government not allocating funds to capitalise the ARC, banks may be told to chip in to form