No sick industrialists

While banks have done well to insist, at Monday’s meeting on corporate debt restructuring (CDR), that promoters need to bring in more funds and relinquish some control, this is unlikely to work until RBI steps in. Unless RBI steps in and formulates more stringent regulations, the political-bureaucratic class will ensure public sector banks (PSBs) will continue to bail out sick units—remember the old joke about there being lots of sick industry but no sick industrialists?

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