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Private banks, only hope for infrastructure gap
April 12, 2017
With growing infrastructure gap, India is in dire need of turning to the private sector for help. The infrastructure gap has grown to as huge as $1.5 trillion. As per the Reserve Bank of India’s proposal, licences to private companies for setting up infrastructure banks. This will be used for setting up roads, ports, power supplies, and other major projects in the span of 10 years.
The banks (both state run and commercial) are saddled with NPA, non-performing loans, credit debt, etc. and economy growth in this case is quite slow.
This is in recent trend being followed by RBI, of letting business giants enter banking areas, for example Bharti Airtel Ltd has set up electronic payment banks, for micro-financing.
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