Q. Which of the following statements with respect to Twin Balance Sheet problem is/are correct?:
1. High Non Performing Assets (NPA’s) of Public sector banks
2. Low stressed balance sheet of the private corporate sector
Select the correct answer using the codes given below:
Answer: A
Notes:
Though, India has today one of the fastest growth rates in the world, for the past few years, certain financial issues have been worsening. In the aftermath of the global financial crisis (GFC) of 2007, India has been trying to come to grips with the ‘twin balance sheet’ (TBS) problem—
(i) High NPAs of the PSBs; and
(ii) Highly stressed balance sheet of the private corporate sector.
India has taken several steps by now to recover and control the bad loans of the banks. But they have not been very effective and banks are even today under high stress. On the other hand, India has been waiting for a recovery in the corporate sector for their balance sheet to come in good health but to no avail.
Source: ForumIAS
