This is why India’s banking system is in such chaos

The Economic Survey 2016-17 was presented by the Finance Minister Arun Jaitley in the Parliament today. According to the survey, India has been aiming at solving its ‘Twin Balance Sheet’ (TBS) problem and so far, they have seen a limited success. The problem still exists as the Non-Performing Assets (NPAs) of the banking system keep increasing, while credit and investment keep falling.

The Economic Survey, however, suggested considering a different approach and recommended a centralised Public Sector Asset Rehabilitation Agency (PARA) that could take charge of the largest, most difficult cases, and make politically tough decisions to reduce debt.