Unorthodox approach to resolving NPAs
The scale of bank NPAs and the pipeline of cases moving for insolvency proceedings is staggering. At one end, there is a sense of genuine progress. Indian capitalism is undergoing a qualitative transformation for the better. The cosy nexus between bankers and promoters with no real penalties for non- performance and bad loans is finally coming to an end. The Indian economy may be in for a more prolonged period of relative stagnation. There are enough examples in economic history of a banking system shock in a country leading to a prolonged periods of tepid economic performance. The hard reality is that there are still no signs of real recovery of private investment in India.