The time has come to consider converting the worst performers among state-owned banks to narrow banks, which won’t lend at all. Narrow banks are safe banks. Narrow banks are safe banks. Narrow banks should be considered seriously to ensure that the mistakes of the past are not repeated at this scale. But in the current context of Indian banking which has repeatedly thrown up crises in state-owned banks, narrow banking may be an idea whose time has come.

Source: Mint November 16, 2017 21:56 UTC