For facing chakravyuha challenges in Indian economy, adopt Needo-banking as Bad Bank : VC Starex University M.M. Goel

Professor M.M .Goel
Gurugram, (Asian independent)   “For facing chakravyuha challenges in Indian economy, adopt   Needo-banking as Bad Bank”, opined Professor M.M. Goel Vice-Chancellor Starex University Gurugam and Founder of  Needonomics School of Thought. He was delivering the special keynote address in the online IIF International Research Conference & Award Summit 2021. He spoke on the topic “Rationale of Bad Bank for Needo-banking in Indian Economy”.  Prof. Aman Agarwal delivered a welcome address and presented a citation on the achievements of Prof. M.M. Goel.
Bad bank is a corporate structure that isolates risky assets held by banks in a separate entity to buy NPAs from a bank at a price that is determined by the bad bank itself, explained needonomist Goel.
Bank means trust among the depositors for earning interest on savings, assessing the quality of borrowers before lending and handling collections,  believes founder Needonomics School of Thought.
The instability in the financial system by lending mistakes called for the bad bank. Funding squeeze created uncertainties that have to be monitored with alertness, awakening and awareness. Bankrupt lenders resulted in dropping credit availability and slowed down the Indian economy with stress in the banking system, told Prof. Goel
To consolidate and accelerate the recovery of bad loans amounting to Rs 2 Lakh Crore (1 per cent of GDP), the creation of National Asset Reconstruction Company Limited (NARCL) was announced in the Budget 2021-22 and has been operationalized,  told Prof. Goel.
The  bad  loans have been taken over at 18 per cent of loan value on average with security receipt by NARCL, partly guaranteed by Government &  proceeds can be written back as profits enhancing  the book value of public sector banks without any dilution of current shareholders, said Prof. Goel.
All the stakeholder in Indian banking system have to become street SMART (simple, moral, action-oriented, responsive and transparent), emphasized Prof. Goel.