Bankers Trust:

We need a Hazare in the financial sector

Bank chiefs unwilling to play ball just ask for an email or fax on the particular account and the requests are never repeated as no one would like to leave a trail for such requests. In the 1990s, the finance ministry used to play a passive role in pushing banks to buy government bonds sold to bridge India’s fiscal deficit. Typically, a bureaucrat would call bank chiefs and ask them to buy bonds.

Bankers Trust:

How can we save India’s MFI industry?

Allowing multiple channels to work and compete with each other is the best solution to the MFI problem. One-and-a-half decade ago, state - run Indian Bank came very close to a collapse when its accumulated losses wiped out its equity and reserves. The Chennai-based lender had made huge losses as it had to set aside money to provide for its bad assets.