The fallacy of false choice

Description

The government is correct in not throwing good money on bad assets. The speech delivered by SS Mundra, deputy governor, RBI reveals that the performance of public sector banks (PSBs) continues to be a concern based on first quarter results ending June 2016 (August 24, 2016). Earlier, the Financial Stability Report of RBI had already warned that stressed assets could record an increase in FY17. The central government is planning to shut down seven public sector undertakings (PSUs) out of the 74 loss-making state-owned units based on the recommendations of NITI Aayog as they were unfit for revival. Earlier, the prime minister had observed from the ramparts of Red Fort that "in our country, the PSUs are formed to fall in a pit, to fail, to get locked or to be sold out. That has been the history. We have tried to bring in a new culture. And today for the first time, I can say with satisfaction that Air India, which had a bad image, has succeeded in registering an operational profit last year." Thus, the government is correctly making a distinction between good and non-recoverable PSUs and not throwing good money on bad assets. Read more at: https://www.financialexpress.com/opinion/the-fallacy-of-false-choice/377757/

Publication Date

16-9-2016

Publication Title

Financial Express

Publisher

The Indian Express [P] Ltd.

Keywords

Banking, Public sector banks, PSBs

Source Link URL

https://www.financialexpress.com/opinion/the-fallacy-of-false-choice/377757/

Link to Full Text

Share

COinS