,
8 tweets,
6 min read
Read on Twitter
Dr. Urjit Patel’s presentation at Stanford is an extremely detailed and thoughtful analysis of Indian Banking.
Provisioning policy of Indian Banks has long been at odds with the Loss Given Defaults of lenders.
From Subbaro to Patel, all governors have called for this correction
Provisioning policy of Indian Banks has long been at odds with the Loss Given Defaults of lenders.
From Subbaro to Patel, all governors have called for this correction
Dr. Patel has dispassionately analyzed why Indian Banks have been structurally challenged.
He rightly calls out the failures on part of key stakeholders: Banks, RBI and Government.
The analysis has been broken down into Pre 2014 and Post 2014.
The buck stops with Pre 2014 Govt
He rightly calls out the failures on part of key stakeholders: Banks, RBI and Government.
The analysis has been broken down into Pre 2014 and Post 2014.
The buck stops with Pre 2014 Govt
The Post 2014 Analysis makes for an insightful read to understand the building blocks of the measures taken to structurally rebuild Indian Banking.
Interesting to note the challenges in the systematic turnaround despite the Legislative, Regulatory and Financial interventions.
Interesting to note the challenges in the systematic turnaround despite the Legislative, Regulatory and Financial interventions.
...And why the contentious Feb-18 circular was required to expedite the systemic recovery process under the IBC which was being held hostage by various interests.
Even though the circular was eventually struck down by SC, the results it achieved during the period are noteworthy.
Even though the circular was eventually struck down by SC, the results it achieved during the period are noteworthy.
The Implications section of the Presentation makes for a sobering read.
Dr. Patel raises just questions over how could the path ahead look like.
These questions are honest and should be used as guideposts to ensure we don’t tread the unwanted path and regress the gains.
Dr. Patel raises just questions over how could the path ahead look like.
These questions are honest and should be used as guideposts to ensure we don’t tread the unwanted path and regress the gains.
While the Analysis is sharp and the Implication Questions are valid; few of his concluding observations are premature and alarmist - Fiscal dominance over Regulations, GB lending leading to NPAs and 2 Tier Regulation.
RBI has announced HFC AQR proving his apprehensions premature
RBI has announced HFC AQR proving his apprehensions premature
A strong reason to disagree with Dr. Patel’s apprehension that lending by PSU Banks will necessarily lead to fraudulent/crippling NPAs is the change in the credit culture that IBC has initiated.
@suchetadalal’s excellent report is a testimony of the same
@suchetadalal’s excellent report is a testimony of the same
Recap Capacity slide is one of the most interesting in the presentation.
Given our context, a counter cyclical growth stimulus is required.
Dogmatic adherence to FRBM & falling behind the curve on recap has Growth-Employment trade off
Jalan ECF report is hence quite important
Given our context, a counter cyclical growth stimulus is required.
Dogmatic adherence to FRBM & falling behind the curve on recap has Growth-Employment trade off
Jalan ECF report is hence quite important
