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Andy Mukherjee

How to Turn a Banking Rescue Into a Crisis

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

Yes, it's another own goal for India.

Yes, it's another own goal for India.

Photographer: Dhiraj Singh/Bloomberg

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.