London: Amid a debate on need for a ‘bad bank’ to tackle mounting NPAs, eminent banker Deepak Parekh has said “it is time to bite the bullet” but cautioned against any such move being seen as a government bailout using the taxpayers’ money.
Besides, a clean-up by the government should not signal that errant borrowers can get away with defaulting on their loans, the veteran industry leader said. Asserting that India’s macro-economic parameters have never been more robust, Parekh said the ‘twin balance sheet problem’ — a lethal combination of stressed corporate and stressed bank balance sheets — is worrisome and if private investment, which is stuck in a vicious cycle, does not pick up, India’s true growth potential will not be attained.
