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21st September 2021 (5 Topics)

NARCL to acquire stressed assets of about Rs 2 lakh crore in phases

‘Bad banks’ can potentially ease the balance sheet problems of commercial banks in India, however, it is not a panacea to the NPA crisis in India. Discuss. (250 Words)

Approach:

  • In the introduction, give a definition of Bad banks and their objectives.
  • Enumerate the positive impacts Bad Bank will have on Banking sector of India
  • Enumerate the challenges that would still remain
  • Way Forward and Conclusion
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