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Indian banking won't be the same again if RBI gets to clean the bad loan mess
May 12, 2017
- Celebrations over the ordinance to clean up the banks’ bad loans mess is quickly giving way to fear.
- Some bankers are disappointed they didn’t get yet another scheme to kick the can down the road, promoters are worried about losing their fading jewels, potential insolvency professionals are cheering and the conservatives worry the regulator is tying itself in knots.
- A sign of things to come is in the Reserve Bank of India’s Friday tweaking of the Joint Lenders’ Forum (JLF) functioning when it imposed a penalty on rogue banks that won’t implement the consensus decision and stripped bank boards of their power to overrule the forum’s decision.
