Is Bank of Baroda the Tip of the Iceberg or the Elephant in the Room? Ranganathan V 09 June 2021 9 There is no finding the light at the end of the black hole aka as public sector banks (PSBs). The mounting non-performing assets (NPAs) have been unyielding to any salutary solution and the government and the Reserve Bank of India (RBI) have practically thrown every known ammunition at the problem.
Starting with the asset quality review in 2015 when Dr Raghuram Rajan first recognised the extent of the problem bogging the banking system, to the prompt corrective action (PCA) of keeping 12 banks under watch, to bringing the insolvency process into motion under IBC (insolvency and bankruptcy code) and finally looking at privatising few of the banks, starting with two in the current year, there has been no lack of ideas and intent, but little in terms of demonstrated outcome.