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