Though these warnings look good prima facie, the actual implementation matters more.
We have seen that, Assets of large PSU Banks turning bad after such high loan growth periods, and probably Central Bank does not act proactively in such cases. PSU Banks have seen their GNPA(s) rising beyond manageable limits in the past decade.
Central Banks should be more careful about PSU Banks rather than Private Banks which are more cautious in lending practices.
Hope that, this time, Central Banks will be firm in their approach.
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