In the banking sector in India, which I have observed at various distances over the last 30 years, it’s the other way round. Are you saying that a macroeconomic problem is turning into a banking problem? Is it too ambitious then to expect that a government will successfully resolve the NPA problem without resolving first the macroeconomic problem? But that problem won’t be durably solved unless you also address the macroeconomic problem. That kind of fiscal dominance has now resulted in fairly pernicious effects in the banking sector and a risk to the saver.

Source: The Hindu August 30, 2020 08:26 UTC