Something is amiss somewhere.

The Concept  of bad bank only reflects very bad economics, worse politics and worst Governance practised in the Country without being able to develop good professionalism in running the banks , prevent the bad borrowers and perpetrators of frauds in banks. A very bad and definitely  avoidable precedence is being set by setting up a BAD BANK. It will prove to be an unmanageable moral hazard in the entire Financial System including the Payment and settlement system . All these could have been avoided had the interference of  corrupt politicians and corrupt  bureaucrats been kept away from banks, financial institutions and the Reserve Bank of India, the Regulator. Bad debts because of business failures on account of natural calamities is understandable and is part of the business risk, but bad debts intentionally designed to loot tax payers and depositors money through influential borrowing from banks, and facilitating frauds by allowing relaxed regulation and supervision by uncalled for intervention of politicians and  bureaucrats who are incompetent and susceptible to corruption in Banks and Financial Institutions Boards is something beyond any justification to weaken the much needed strong Financial System to take the economy and the Country forward. Weak legal system favouring bad borrowers and unimaginably poor Governance System pursued by weakening the regulatory and supervisory system in the guise of cost saving and better risk management in the system have been the cause behind the Financial systems' failure in giving the economy the kick start and the much needed economic growth. Sorry state of affairs indeed despite having the best of human resources, the Technology, and  the political stability the Country has.Something is amiss somewhere. 

T V G Krishnan