Ep 212: Pandemonium in India's Banks
The Seen and the Unseen - hosted by Amit Varma
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Is There a Similar Interplay of Incentives?
Public sector banks are not just banking. There are all the social objectives that they have to fulfil, but maybe there are other ways of doing that. No one's really accountable within the er governmental tom right? You are not like in a private sector bank, there is always the pressure of the market. If you have too many bad loans, a market will punish you. In a public sector bank, market won't punish you. Instead, the government will recapitalize you with yours and my money,. taxpeers money, sot. Smua loan is a classic example. Orsa kishan credit card - it's perpetually replenishment. The loans are never paid back.
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