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Opinion
Andy Mukherjee

India's Big Bad Bad-Banks Idea

Parking soured loans in fewer, larger banks won't fix this $191 billion mess.
Business Suffers As India Struggles To Replace Banned Cash
Photographer: Anindito Mukherjee/Bloomberg

India wants to create bad banks -- maybe as many as three more of them. 

New Delhi has set up a top ministerial panel that will clear merger plans proposed by lenders' boards. Investors who plowed into state-run banks on Wednesday, pushing an index of their shares 2 percent higher, are deluding themselves if they think this is some sort of reform.