Bad bank should have been set up 3-4 years back, not now: Kotak Securities report
January 14, 2021 × Would have been useful just after AQR or earlier when stress was building up and banks were looking to delay bad debt recognition Establishing a bad bank today would aggregate but not serve the purpose that has been observed in other markets, Kotak Securities Ltd (KSL) said in a report. Bad bank is perhaps well served in the initial leg of the loan recognition cycle, it added. “While we are unaware of its probability and design, creation of a bad bank would have been most fruitful three-four years back (perhaps just after the Asset Quality Review) or earlier when the st...
Source: thehindubusinessline.com