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FEATURED

behemoth of delinquencies. lated decisions. Other than JLF be necessary along the fabric
With sample sizes signifi- however, the grander scheme of conventional finance theo-
cantly chunkier than the AFIs be- has been 2015’s coveted Mission ry. And to that end, economists
fore, RBI stuck its needle surgi- Indradhanush. of great reverence are grinding
cally uncovering years of missed A comprehensive overhaul ideations for solutions that tran-
repayments and evergreening. of a reform, Indradhanush went scend both short-term stability
Mandating straightening up ham on all fronts of banking de- as well as long-term sustenance.
of all such cluttered instances terioration, with a teethy sortie Ideas focusing on installing
of bad loans to be classified on 7 separate fronts to ambi- the right incentives for sensible
properly as the NPAs they were. tiously bring up PSB performance loaning, while also productive
Needless to say, ensuring a long to a higher standard. Shaking up credit inspection with fintech
winter for the shaken-up banks. practices ranging from all the expertise. From tech driven
With clear counts of as- way to the top with managerial analysis pushing transparency
set quality deterioration and appointments all the way down through Automation to radical-
ballooning NPAs, bank profits to employment decisions to be isations of re-privatising ideas
plummeted. As the 0.4% provi- liberalized for competitiveness as RBI’s IWG infamously suggest-
sioning for standard assets had in an autonomous stroke. ed. Another idiosyncratic could
to be pumped up to 15% for It also sanctioned recap- play around with ideas of UBI
NPAs, quarterly losses came in italizations of no less than 1.8 as is already being implement-
thumping waves of thousands lakh crores, of which 70,000 was ed at significantly smaller scales
of Crores. With the great ex- chipped in straight from budget- in niche categorizations, more
pose particularly exposing PSBs ary allocations. A bold step to- research would definitely help
stresses, compared to relatively wards easing banking stresses. solidify such a hypothesis, never-
smaller extent of NPAs for PVBs. The long-term impact of which, theless one certainty is that it’ll
A necessary evil of sorts, hasn’t been entirely as desired. definitely be more stimulant than
RBI Governor at the time, Ra- top-down recapitalization. Fol-
ghuram Rajan highlighted the 4. CONCLUSION; low-up to this inquiry will be tak-
need for deep surgery in lieu of Ripe for Research en up before the final print-ver-
platitudinous band-aids drifting It’s a far cry from a cri- sion of this review.
the finance sector into unten- sis averted, tectonic shifts will
able waters.

3.1.3. Qualitative/Adminis-
trative Measures
Quantitative messes are
oft the product of qualitive over-
sights, the ineffectively casu-
al running of PSBs in particular
was central to the protraction
of a delinquent calamity of such
a degree. Managerial pedi-
gree on the other hand could’ve
stemmed the tide with proactive
recoveries and credit inquisi-
tions.
In recognition of such in-
eptitude and disincentives for
non-complacency, the govt.
initiated a number of adminis-
trative ideals, starting off with
the Joint Lender’s Forum, which
allowed for the coalescence of
bank officials to make debt re-

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