The deputy governor of RBI, Mr. Viral Acharya reiterated Governor Urjit Patel’s call for merger of under-performers with stronger banks as a quid pro quo for government capital injection.
“It would provide great opportunity to rejig management responsibility away from those who have underperformed or dragged their feet the most,” said Acharya in his speech at a FICCI event in Mumbai.
In his speech, the deputy governor likened the bad loan situation to a person slipping off the terrace of a skyscraper. He said that not preparing for an emergency is akin to “hoping that laws of gravity will freeze and work differently this time”.