Commenting that the government should not allocate capital poorly, RBI deuputy governor Viral Acharya mooted options for the troubled sector including raising private capital and selling non-core assets. According to the central banker, divestment is also one option that needs to be considered. “Perhaps re-privatising some of the nationalised banks is an idea whose time has come?” he said. These steps would pare the overall amount the Centre needed to inject as bank capital and help preserve its hard-earned fiscal discipline, he opined. “We should grapple this macroeconomic stability to our shores with hoops of steel,” he said.

Source: The Hindu April 28, 2017 16:03 UTC