New Delhi, 28/1 (AO Bureau): The IMF’s Chief Economist Gita Gopinath has supported India’s idea of creating a bed bank with an estimated economic growth rate of 11.5 percent in 2021. Significantly, the IMF has predicted the economic growth rate to be in double digits this year in its latest world economic scenario released on Tuesday. Gopinath said that the Insolvency and Bankruptcy Code should be preferred as there is a possibility of increasing bad loans due to the economic disruption caused by the Corona epidemic, for which Bad Bank is a good idea.
He told the idea of creating a bad bank. In an interview given to CNBC TV18, he said that if we expect to go up to 13% NPA in the baseline, then it will require a more efficient IBC process. He said that the idea of creating a bad bank is definitely a worthy scheme. In view of the recent circumstances, banks and NBFCs should be encouraged to increase capital. So that the current financial situation can be estimated. Apart from this, the government should also prepare to invest capital in public sector banks.
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