Project Sashakt: Creating a bigger bad asset market is a good idea; but who will do the bankrolling?
Should one be excited about the Narendra Modi government’s new bad loan resolution plan, Sashakt? Dumping all bad loans into one entity with no clear resolution plan was like putting together several tiny explosive materials to build a big bomb. On the face of it, the thrust of ‘Project Sashakt’, based on the recommendations of the Sunil Mehta-led panel, unlike ‘Mission Indradhanush’ that focused on several aspects of bank governance, is mainly creating a wider market for the speedy sale or resolution of stressed assets. The problem in bad asset resolution, in India, was always a lack of buyers with deep pockets, who can do the bankrolling for large buyouts of stressed assets. Creating a bigger bad asset resolution market under the proposed Sashakt plan is a good move.
Discover Related
Fee-Starved Banks Are Getting $38 Billion of Junk Buyout Deals
Billionaire Uday Kotak’s Private Bank Adds Thousands of Clients
Manappuram Finance: Long-term potential holds despite disappointing Q3
Economy on speedy rebound, India to remain fastest growing nation: Sitharaman
S. Naren has an advice for investors: protect gains made over past five years
The plague of souring small loans is back
Finance minister Nirmala Sitharaman's eighth budget in eight points
Budget 2025: Government banks on asset monetisation to spur growth
Budget 2025: Govt tries to strike a balance between credit and deposits
Personal loans: As bad debts spike, stocks of private banks slide
Market strategy for Budget 2025: How should investors position their portfolios?
Bad Loans to Impact Growth & Profitability of Small Finance Banks
Private Lenders Set to Take Over Alacrity in Debt Restructuring
Ray Dalio’s debt cycles point to a dangerous economic shift: Are we on the brink?
Microfinance meltdown: Five stocks that could come out on top
Coming M&A Wave Will Be a Boon For Debt Bankers: Credit Weekly
Don’t worry about HYDRAA: Bhatti reassures bankers
Investors brace for £300bn borrowing binge in Rachel Reeves' Budget
Financial regulators formulate plans for high-risk regions
Centre to nudge banks to fund renewable energy projects