Andy Mukherjee, Columnist

How to Turn a Banking Rescue Into a Crisis

India is botching the takeover of Yes, sending ripples through the financial system.

March 9, 2020 at 1:02 AM UTC

Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services in Asia. Previously, he worked for Reuters, the Straits Times and Bloomberg News.

Yes, it's another own goal for India.
Photographer: Dhiraj Singh/Bloomberg

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Bungling the rescue of a bank that has more than $20 billion in deposits is probably the costliest own goal India has scored since its foolish November 2016 ban on most currency notes.

Arm-twisting government-controlled State Bank of India to inject capital into failing Yes Bank Ltd. was the only option left for New Delhi. But the halfhearted bailout just may turn a bad dream for savers into a nightmare for the financial system.