ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Non-performing Assets in Indian Banks

Growing non-performing assets is a recurrent problem in the Indian banking sector. Over the past two decades, there have been two such episodes when the banking sector was severely impaired by balance sheet problems. A comparative analysis of two banking crisis episodes— one in the late 1990s, and another that started in the aftermath of the 2008 Global Financial Crisis and is yet to be resolved—is presented. Taking note of the macroeconomic and banking environment preceding these episodes, and the degree and nature of crises, policy responses undertaken are discussed. Policy lessons are explored with suggestions for measures to adapt to a future balance sheet-related crisis in the banking sector such that the impact on the real economy is minimal.

Cost of Credit of Commercial Banks in a Deregulated Environment

This study analyses the cost of credit of commercial banks in a deregulated environment on the basis of BSR data in respect of large borrowal accounts. As subsidisation of interest rates either with reference to priority sectors or size of loans has virtually vanished, there is imperative need to evolve a suitable information system in respect of small borrowal accounts on a par with that for large accounts, preferably through repetitive sample surveys.

On Fiscal Deficits and Real Interest Rates

The proposition that the size of the fiscal deficit affects the level of interest rates is theoretically completely erroneous, which in turn makes the budgetary strategy fundamentally flawed.
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