![Govt guarantee to bad bank SRs a blind gambit](https://images.assettype.com/fortuneindia%2F2021-07%2F59f42729-7460-45e9-9599-c0be5e9d9c12%2FCW00GT__1__copy.jpg?w=300&q=95)
Govt guarantee to bad bank SRs a blind gambit
The new guarantee to all Security Receipt holders that in the event of a shortfall it is the government who will step in and pay from the public exchequer is a problematic development.
The new guarantee to all Security Receipt holders that in the event of a shortfall it is the government who will step in and pay from the public exchequer is a problematic development.
According to a BofA Securities report, the Covid-19 shock could delay India touching the GDP of Japan by three years. In their latest estimates, it will now happen by 2031 if the economy grows at 9%.
The magnitude of stressed assets piled up with PSBs raises questions on the rationale and funding of such an ARC/AMC.