The stock market has reached new heights. The Nifty on January 5 witnessed the first rise of 14,200 points. This is the tenth consecutive day that the stock market has gained.

IT and banking financial services stocks were the top gainers. Although the trade started with a loss in the morning, the bulls used the decline as an investment opportunity.

The Nifty set a new record high of 14,215. Similarly, Nifty closed 66 points higher at 14,199.50. The Sensex closed at 48,437. The Sensex up 261 points.

The continued investment by foreign investment firms was behind the boom. The Nifty IT index is up 2.26 per cent.

Axis Bank, HDFC, IndusInd Bank, HDFC Life and Wipro were the top gainers. Axis Bank rose above 6 per cent.

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The stock market, which has been steadily rising, set a new record. Banks, auto and pharma stocks were the main contributors to the stock market’s rise to new heights. The Nifty Bank Index was up 2.46 per cent, the Nifty Pharma Index was up 1.22 per cent and the Nifty Auto Index was up 1.71 per cent.

The Sensex closed above 44,500 and the Nifty closed above 13,000. The Nifty set a new record of 13,079. The Sensex was up by 445.87 points and the Nifty by 128.70 points.

The Sensex closed at 44,523.02 points and the Nifty at 13055.20 points. The Nifty traded down 200 points during the day. The day’s low was 12,978 points.

Adani Ports, Axis Bank, HDFC Bank, Eicher Motors and Hindalco were the top five gainers. Shares of Axis Bank, HDFC Bank, Aysher Motors and Hindalco gained over 3 per cent.

Most of the stocks in the Nifty gained. Out of the 50 stocks in the Nifty, 38 gained while 12 lost. Shares of Titan, HDFC, BPCL, Nestle India and GAIL lost ground.

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The Sensex closed at 43,882 points and the Nifty at 12,859 points. The Nifty traded down more than 250 points during the day. The day’s low was 12,730 points. Similarly, the Nifty rose to 12,892 points during the day.

IT, FMCG and bank stocks were the major contributors to the day’s gain. The Nifty Bank Index was up 1.15 per cent, the Nifty FMCG Index was up 1.19 per cent and the Nifty IT Index was up 1.40 per cent.

Bajaj Finserv, Titan, GAIL, Bajaj Finance and Bharti Airtel were the top five gainers. Bajaj Finserv rose 9.27 per cent. Shares of Titan, GAIL, Bajaj Finance and Bharti Airtel gained over 3 per cent each.

The majority of Nifty stocks traded higher. Out of the 50 stocks in the Nifty, 33 stocks gained while 17 stocks fell. Shares of Reliance, Adani Ports, IndusInd Bank, Axis Bank and Sun Pharma lost ground. Reliance fell 3.66 per cent.

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The stock market witnessed loses after a continuous jump. It still set a new record, but later closed with a loss due to fluctuations.

The Sensex was down 623 points and the Nifty was down 180 points. The Sensex closed at 43599.02 points and the Nifty closed at 12,771.50 points. The volatility was very strong during the trade. The Nifty traded down more than 200 points during the day. The day’s low was 12,745 points. The Nifty had gone up to 12,963 points.

The main losers were banking stocks, which have led the market in recent days. The Nifty Bank Index fell 3.02 percent. Banking stocks such as SBI, Axis Bank and ICICI Bank were the biggest losers.

Power Grid, ITC, NTPC, Tata Steel and Titan are the top five gainers in the Nifty. Powergrid rose 2.45 per cent. Shares of ITC, NTPC, Tata Steel and Titan gained over one per cent.

Most of the stocks in the Nifty fell. Thirty-three Nifty stocks lost while 17 gained. Shares of SBI, Axis Bank, ICICI Bank, HDFC Life and JSW Steel lost more than 3 per cent.

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The stock market gained for the third day in a row. The market was likely to rise as Donald was likely to return to the US presidency. It is hoped that Trump will take a pro-market stance. The Sensex was up by 335 points and the Nifty by 95 points. Severe volatility persisted throughout the trade.

The trade started with gains but then fluctuated sharply. At one point, the market went into a tailspin. But then there was a strong recovery. The Nifty traded down more than 150 points during the day.

The Sensex remained above 40,000 points. The Sensex closed at 40,616 points. The Nifty rose again to 11,900 points. The Nifty rose to 11, 929 registering 95 points gain. Even though it crashed to 11,756 it made strong recovering and closed at 11,908 points.

The majority of Nifty stocks traded higher during the day. Of the 50 stocks involved in the Nifty, 33 gained while 17 lost. IndusInd Bank, Sun Pharma, Divis Lab, Reliance Industries and Cipla were the top five gainers of the day.

IndusInd Bank gained 4.89 per cent. IndusInd Bank, Sun Pharma, Divis Lab, Reliance Industries, Cipla and Infosys gained over 3 per cent each.

Pharma and IT stocks were the biggest gainers of the day. The Nifty Pharma index was up 2.18 per cent. The Nifty IT index gained 1.78 per cent.

UPL, Axis Bank, HDFC, ICICI Bank and Hindalco were the top five losers in the Nifty. UPL was down 3.90 per cent.

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The morning trade started with a slight gain but then moved towards a loss. But since then, the market has seen a surge. The Nifty rose 100 points from a low.

The Sensex closed at 39,757 points. 39,968 points. The day’s low is 39,334 points. Similarly, Nifty rose by 26 points to 11,725. The Nifty closed at 11,669 points after falling sharply to 11,557 points.

The majority of Nifty stocks traded higher on the day. Of the 50 stocks involved in the Nifty, 26 gained while 24 lost. IndusInd Bank, ICICI Bank, Axis Bank, HDFC and Bharti Airtel were the top five gainers on the day.

IndusInd Bank gained 6.45%. ICICI Bank, Axis Bank, HDFC and Bharti Airtel gained over 5 per cent.

Bank stocks were the biggest gainers on the day. Similarly, the Nifty Banking Index rose by 4.15 per cent. ICICI Bank’s strong performance led to the rise of other bank stocks.

Reliance Industries, Divis Lab, Acer Motors, HCL Tech and TCS were the top five losers in the Nifty. Reliance Industries fell 8.69 per cent. Second-quarter results fell short of market expectations.

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The stock market continued to fluctuate sharply. The morning trade started with a loss. Later, it moved towards gain but could not sustain it. The Sensex closed at 39,749 points. It was up to 40,010 points. The day’s was 39,524 points.

The Nifty had gained till 11,744 points but lost 58 points on strong volatility. The Nifty fell to 11,606 points and it had strong support at 11,600. Nifty closed at 11,670 points.

Most of the Nifty stocks lost ground. Out of the 50 stocks in the Nifty, 34 stocks lost while only 16 stocks gained. Asian Paints, Tech Mahindra, Ultratech Cement, Shree Cements and HCL Tech were the top five gainers in the Nifty. Asian Paints gained 3.02 per cent.

Banking, auto, pharma and metal stocks were under selling pressure. Only the IT sector has registered gains. L&T, Titan Industries, Adani Ports, ONGC and Axis Bank were the top five losers in the Nifty. L&T lost 4.85 per cent. Shares of Titan Industries, Adani Ports, ONGC and Axis Bank fell more than 2 per cent.

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The Bombay Stock Exchange (BSE) continued its strong rally on Friday on the first trading day this week. The stock market, which started with gains, has not lost ground at any stage on the day. Eventually the trade ended at the same level as it had started.

The Sensex is up 448 points. The Nifty gained 110 points.

The Sensex closed at 40,431 points. It had gone up to 40,519.48 points. Similarly, the Nifty, which had up to 11,898.25 points closed at 11,873 points.

Bank stocks were the main gainers on the day. The Nifty Bank Index was up 2.96 per cent. HDFC Bank’s strong second quarter results lead to a rise in banking stocks. Shares of Bank of Baroda, Federal Bank and ICICI Bank gained between 5% and 8%.

The upward trend was also seen in metal indices. The Nifty Metal Index was up 1.78 per cent. At the same time, auto, pharma and IT stocks came under selling pressure. The Nifty Pharma index lost 1.67 per cent.

The majority of Nifty stocks traded higher on the day. Out of the 50 stocks in the Nifty, 35 gained while 15 lost. ICICI Bank, Nestle India, Axis Bank, GAIL and SBI are the top five gainers in the Nifty on the day. ICICI Bank gained 5.12 per cent. Shares of Nestle India, Axis Bank, GAIL and SBI gained over 4 per cent.

Divis Lab, Acer Motors, Hero Motors, Cipla and Bajaj Auto were the top five losers in the Nifty. These stocks lost over 2 per cent.

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The Sensex closed at 40,509 points on October 9. The day’s low was 40,066 points. It was up 40,585 points during trading. The Nifty rose above 11,900 points and closed at the same level. The Nifty rose to 11,938 points during trading. It has since closed at 11,914.

Bank stocks led the gains on the day. Out of the 50 stocks in the Nifty, 24 stocks gained while 26 stocks lost. Wipro, ICICI Bank, Axis Bank, SBI and HDFC Bank were the top gainers on the day. Wipro rose 4.40 per cent. ICICI Bank, Axis Bank, SBI and HDFC Bank gained over 3 per cent each Wipro, ICICI Bank, Axis Bank, SBI and HDFC Bank.
Grasim, Hindalco, UPL, Sun Pharma and SBI Life were the top five losers in the Nifty.

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The Sensex closed at 38,697 points. The day’s low was 38,410 points. After last week’s correction, this week’s the best performance. The Nifty rose again to 11,400 points and ended at that level. The market started well and then continued to gain. The Nifty closed at 11,417.

On September 30, the central government introduced more restrictions on lockdowns to help the market. It is a reflection of the progress in the global market, which is also seen in the Indian market.

Bank stocks led the gains on the day. The Nifty Bank Index was up 3.70 per cent. IndusInd Bank was up 12.44 per cent on the day.

Most of the 50 stocks in the Nifty were gainers. Thirty-nine stocks gained while only 11 stocks lost. IndusInd Bank, Bajaj Finance, Axis Bank, Bajaj Auto and ICICI Bank were the top gainers. Shares of Bajaj Finance, Axis Bank, Bajaj Auto, ICICI Bank, Tech Mahindra, Adani Ports, Bajaj Finserv and Kotak Mahindra Bank gained over 3 per cent.

Dr Reddy’s Lab, ONGC, ITC, NTPC and Titan were the top five losers in the Nifty.

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The Sensex ended at 37,981 points. It rose to 38,035 points during trading but could not close above 38,000. The trade started with a good gain in the morning. The rise in the US market was also reflected in the Indian market.

The Nifty closed above 11,200 on the day. The Nifty, which rose to 11,234 points, closed at 11,227. The Nifty, which dipped below 11,800 last week, rose 450 points from there.

Most of the 50 stocks in the Nifty were gainers on the day. Of the 46 stocks that gained, only four lost. IndusInd Bank, Bajaj Finance, Axis Bank, ONGC and Tata Motors were the top gainers. IndusInd Bank gained 8 per cent. Shares of Bajaj Finance, Axis Bank, ONGC, Tata Motors, Powergrid, Adani Ports and Sun Pharma gained over 4 per cent

Wipro, Hindustan Unilever, Nestle India and Infosys were the only four Nifty stocks to lose ground. These stocks recorded a loss of less than one per cent.

Banks, auto, IT and metal stocks were the top gainers on the day. The Nifty Bank Index was up 3.26 per cent, the Nifty Auto Index was up 3.04 per cent and the Nifty Metal Index was up 2.96 per cent. Banking stocks such as IndusInd Bank, Bandan Bank, Federal Bank, Axis Bank and RBL Bank rose between 5 per cent and 8 per cent. Automobile shares of Balakrishna Industries and TVS Motors gained over 6 per cent.

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The Sensex closed above 39,000 points and the Nifty closed above 11,500. Volatility was as visible as in the previous days but at no point in trading did it go down from September 14’s closing level.

The Sensex ended at 39,044 points. The Sensex has surpassed the psychological level of 39,000. The day’s low is 38,753 points. Similarly, the Nifty closed at 11,521 points. It had fallen to 11,442 points at one point but closed above 11,500.

Most of the index-based stocks were profitable on the day. Thirty-one stocks in the Nifty gained while 19 lost. Pharma and bank stocks were the main gainers of the day. IndusInd Bank, UPL, Cipla, Bharti Airtel and Axis Bank are the top five gainers in the Nifty. IndusInd Bank rose 4.27 per cent. Shares of UPL, Cipla, Bharti Airtel, Axis Bank, Sun Pharma, Bajaj Finance and ICICI Bank rose more than 2 per cent.

The Nifty Pharma index was up 1.93 per cent. Shares of Lupin, Aurobindo Pharma, Cipla, Biocon, Torrent Pharma and Sun Pharma rose more than 20 per cent. Similarly, Nifty rose by 1.65 per cent. The major gainers were IndusInd Bank, IDFC First Bank, Axis Bank and ICICI Bank. Shares of smallcap continued to rise on the day.

Titan Industries, Maruti Suzuki, ITC, HDFC Life and Asian Paints were the biggest losers in the Nifty.

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The Sensex ended 664 points higher at 38,840 points. The day’s low was 38,367 points. The Nifty rose above 11,450 points at one point. The stock closed at 11,449.25 points. The Nifty rose by 140 points on the day from its lowest level.

The Indian stock market opened higher on the back of gains in the US stock market on September 9. At no point in the trade did the indices lose ground.

Shares of Reliance Industries, which had not had a significant impact on the market over the past few weeks, surged, giving the market a boost. The news that Reliance is in talks to invest Amazon in retail has led to a rise in stock prices.

Thirty stocks in the Nifty rose while 19 stocks declined. There was no change in the share price. Reliance Industries, BPCL, Asian Paints, IOC and Axis Bank were the top five gainers. Reliance gained 7.29 per cent and BPCL 6.02 per cent. Shares of Asian Paints, IOC, Axis Bank and Grasim Industries gained more than 3 per cent each.

Shares of Public Sector Banks were the main gainers on the day. Metal stocks, meanwhile, faced selling pressure.

Infratel, Hindalco, Tata Steel, Bharti Airtel and Dr Reddy’s Lab were the biggest losers in the Nifty. Infratel fell 4.78 percent. Hindalco and Tata Steel lost more than 2% each. The Nifty Metal Index lost 1.14 per cent.

Banking stocks rose on the day as the Supreme Court adjourned its hearing on a petition seeking a waiver of interest during the moratorium to September 28. Shares, which have been selling in recent days, rose.

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The Sensex ended 171 points lower at 38,194 points. Similarly, Nifty declined by 39 points to close at 11,278 points. The Nifty was down by 11,185 points during the day.

The Indian stock market started with a loss following the fall in the US stock market on September 8. At no point in the trade did the indices returned a profit.

Whiles 25 shares in Nifty were up 24 shares were down. There was no change in the share price. Tata Steel, Zee Limited, Cipla, Reliance Industries and Grasim Industries were the top five gainers in the Nifty. Tata Steel rose 3.57 per cent. Pharma and metal stocks were the main gainers of the day. The decline was visible in other areas. Bank stocks fell sharply.

SBI, GAIL, Bajaj Finserv, Axis Bank and IOC were the biggest losers in the Nifty. SBI fell 4.90 per cent. Shares of GAIL, Bajaj Finserv, Axis Bank and IOC lost more than 2 per cent each.

The Nifty Bank Index lost 2.1 per cent. The market is mainly looking at a petition before the Supreme Court seeking a waiver of interest during the moratorium period. Concerns over whether the verdict in the case would be adverse led to a fall in bank shares.

The Nifty Pharma Index gained 1.9 per cent. Shares of Biocon, Cipla, Arbindo Pharma, Lupine and Torrent Pharma gained more than 2 per cent each.

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The 30-share benchmark Sensex fell by 633 points to close at 38,357 points. The market witnessed sharp fluctuations throughout the trading session. The Nifty was down 193 points. The Nifty was up by 11,452.05 points at noon but fell by 120 points. The Sensex was up by 38,729.66 points, but fell sharply.

The sharp fall in the US market on September 3 was also reflected in the Indian market. Strong selling pressure on technology stocks led to a decline in the US market.

When 49 stocks in the Nifty registered losses, only one gained. Maruti Suzuki is the only major gainer. Maruti rose 1.76 per cent.

Tata Steel, Axis Bank, Adani Ports, JSW Steel and NTPC were the top five losers in the Nifty. All these five stocks lost more than three per cent.

Metal stocks were the biggest losers. The Nifty Metal Index was down 3.01 per cent. The Nifty Bank Index was down 2.21 per cent, the Pharma Index was down 2 per cent and the Energy Index was down 1.91 per cent.

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Thirty-five Nifty stocks rose while 15 stocks declined. Bharti Airtel, JSW Steel, Hindalco, Asian Paints and Bajaj Finance were the top five gainers in the Nifty. Bharti Airtel rose 7.11%. Shares of JSW Steel, Hindalco, Asian Paints, Bajaj Finance, NTPC and Tata Steel gained over 4%.

The Supreme Court ruling on the payment of AGR arrears by telecom companies has created a mixed reaction among stocks in the sector. Shares of Bharti Airtel rose 70 per cent, while Vodafone Idea fell more than 12 per cent.

The September 1 verdict was eagerly awaited one of the Supreme Court. The Supreme Court has allowed telecom companies 10 years to pay AGR arrears. This deadline will start on April 1, 2021. The court also ordered that 10 per cent of the amount be paid by March 31. The telecom companies had asked the Supreme Court to allow them 15 years. The verdict has generated a positive response in the market in general.

Metal stocks performed the best on September 1. The Nifty Metal Index was up 3.15 per cent. Shares of JSW Steel, Jindal Steel, Hindalco, Tata Steel, SAIL and National Aluminum rose over 40 per cent. The Nifty Pharma index was up 2.34 per cent and the Nifty FMCG was up 1.28 per cent. Leading pharma stocks Biocon gained 7.63%.

Infratel, ONGC, Axis Bank, Adani Ports and Infosys were the biggest losers in the Nifty.

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The Sensex was down 394 points and the Nifty 96 points. The Sensex ended at 38,220 points on August 20. The Sensex had gained over 38,402 points in the morning session. Similarly, the Nifty closed at 11,312 points.

Thirteen Nifty stocks gained while 37 stocks lost. The top five gainers were NTPC, Powergrid, ONGC, Coal India and BPCL. NTPC rose 6.87 per cent.

Energy stocks were the main gainers on the day. The Nifty Energy Index rose 1.98 per cent. Adani Transmission gained 10%; Tata Power was up 8%. Metal stocks also gained. Leading metal stocks Jindal Steel rose 3.25%. Metal stocks have been gaining steadily over the past few days.

Bank stocks, meanwhile, came under selling pressure. The Nifty Bank Index was down 1.29 per cent. Ten of the 11 stocks in the Nifty Bank index lost ground.

Tata Motors, HDFC, Axis Bank, ICICI Bank and Wipro were the top five losers in the Nifty. Shares of Tata Motors, HDFC, Axis Bank and ICICI Bank fell more than 2 per cent.

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The Nifty was down 122 points on August 14. Nifty closed at 11,178.40. It traded higher at 11,366.25 points, after which it fell by more than 250 points. The Nifty is currently trading at its lowest level of 11,111.45.

Nifty 37 stocks lost ground while 13 stocks gained. The top five gainers were JSW Steel, Coal India, Sun Pharma, Cipla and NTPC. JSW Steel and Coal India gained over 2 per cent.

Eicher Motors, Tata Motors, Mahindra & Mahindra, Axis Bank and Bajaj Finance were the top five losers in the Nifty. Eicher Motors fell more than 7 per cent. Shares of Tata Motors fell 4.80 per cent. Mahindra & Mahindra reported a loss of 3.27 per cent. Axis Bank and Bajaj Finance fell more than two per cent.

Automobile and bank stocks were the main losers on the day. The Nifty Auto Index gained 2.56 per cent. All 14 stocks except Ashok Leyland, which is listed on the Nifty Auto Index, declined.

The Nifty Bank Index ended with a loss of 2.33 per cent. Bank of Baroda, RBL Bank, IDAFC First Bank and Punjab National Bank lost three to four per cent each.

At the same time, metal stocks gained on the day. Metal stocks have been steadily gaining over the past few days. August 14 was also a day of gains for pharma stocks. Lupine was up 8.97 per cent.

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The Sensex is up 225 points and the Nifty 52 points on August 11. The Sensex closed at 38,407 points. The Sensex had gained over 38,556 points during the trading session.
The Nifty closed at 11,322. The stock had touched at 11,373 points during the trade session. The Nifty closed above 11,300 for the first time since the stock market crash in March.

Banks and metals stocks were the main gainers on the day. IDFC First Bank rose 7.49 per cent. Nifty Bank and metal indices gained over one-and-a-half per cent. At the same time, pharma stocks were gaining ground. The Nifty Pharma index was down 1.42 per cent.

The top five gainers were Zee Limited, JSW Steel, Axis Bank, BPCL and IndusInd Bank. Zee Ltd. gained 5.14 per cent.

Sree Cements, Titan, UPL, Cipla and Dr. Reddy’s Laboratories are the top 5 losers in the Nifty. Sree Cement and Titan fell more than 3.5 per cent.

Thirty-three stocks included in the Nifty 33 gained while 17 stocks lost ground.

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Similarly, the Nifty ended 110 points lower at 11,102 points. Nifty was up by 11,299.95 points during trading. From there it dropped about 200 points. The Nifty is under strong pressure at 11,300. It couldn’t break through and booking of profits was noticed in the market.

Dr Reddy’s, Sun Pharma, Wipro, Vedanta and Maruti Suzuki are the top five gainers in the Nifty. Dr. Reddy’s gained 4.60 per cent. The stock hit a 52-week high, setting a new record.

Pharma stocks helped keep the market afloat on the day. Divis Lab was up 5.67% and Sun Pharma was up 3.37%. Similarly, the Nifty gained 3.11 per cent on July 30.

IT stocks also gained today. IT stocks including Infosys, Wipro and pharma stocks such as Sun Pharma and Cipla also recorded a 52-week high.

BPCL, IndusInd Bank, IOC, HDFC and Axis Bank were the top five losers in the Nifty. BPCL lost 8 per cent today. IOC fell 4 per cent.

Bank stocks lost ground on July 30. The Nifty Bank Index fell by 2 per cent. IndusInd Bank fell 5 per cent.

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Rating agencies and financial research institutes estimate that Indian banks will have to raise between Rs.15,000 crores and Rs.37,500 crores over the next two years in the wake of the impact on the COVID-19 economy. They point to the need for additional capital mobilisation in view of the potential for banks’ non-performing assets to grow and growth to slow.

Private banks have already moved into new transactions to raise deposits. Which way will the public sector banks, which been generally weak and, to say it colloquially, in a pregnant state’, resort to raising capital?

Leading private sector banks such as Axis Bank and Kotak Mahindra Bank are actively pursuing the mission of attracting investments. Carlyle Group, a global private equity firm, has invested Rs. 7,500 crores in Axis Bank. Kotak Mahindra Bank has raised Rs.7,460 crore through QIP (Qualified Institutional Placement).

At the same time, raising funds for public sector banks is not easy. Experts point out that public sector banks will need an additional Rs.1.5 lakh crore in capital. The government, which is facing a high fiscal deficit due to the revenue drought created by COVID-19, has limited support for public sector banks. The government has invested Rs.3.5 lakh crore in public sector banks in the last five years. No additional capital has been allocated to public sector banks in the last budget or the recently announced financial package.

In such a situation, one way is to mobilise investment through the capital market. The money raised by the government through bonds can be deposited in banks. The government has already resorted to this method. But the question remains as to how much money can be raised in this way from a market with very limited liquidity.

Another way is to privatise public sector banks. Years ago, a Reserve Bank committee headed by former Axis Bank chairman P.J. Nayak had suggested that reducing the government’s stake to less than 50 per cent was a way to increase the efficiency of public sector banks.

Public sector banks are in a situation where they are prone to sinking like a ship due to over-indebtedness and loss-making cracks. To prevent them from sinking, the government can take steps to sell the shares while maintaining a significant shareholding so as not to lose control. Bringing professionals into management from the private sector can also be a cure for the disease of mismanagement.

But even if the government is willing to sell the shares, it remains to be seen how much money can be raised through it in the current situation. Public sector banking was one of the worst hit by the stock market crash. The share price of public sector banks is currently much lower than the book value. Their share price is only 0.3 times to 0.8 times the book value. At the same time, the value of shares of private banks is still high. For example, Kotak Mahindra Bank trades at 4.7 times its book value.

It is difficult to raise the required capital through the sale of shares of public sector banks which have been devalued due to the decline in the market. Currently, even SBI, the largest public sector bank, has a market cap of just Rs.1.71 lakh crore. Shares of most public sector banks are trading at the lowest level in the last seven to ten years.

Another way is to set up an institution called ‘Bad Bank’ and redistribute the entire credit burden of the banks to it. A bad bank is an institution set up to clear the banks of all their bad debts. Bad bank will handle the burden of bad credit from then on. The only job of a bad bank is to reorganise assets. Consideration should be given to the use of asset restructuring options in the event of a long delay in the completion of the proceedings under the Pauper Act of the National Company Law Tribunal.

The job of the bad bank will be to reorganise the assets only. Consideration should be given to the use of asset restructuring options in the event of a long delay in the completion of the proceedings under the National Company Law Tribunal under the Pauper Act.

By transferring the bad debt to an institution like Bad Bank, the banks can replace the old canvas and run the loan business as smoothly as painting a new one. The old losses can be offset by the profits from the loan business. While bad credit is not eliminated, technically removing credit from the balance sheet will give banks more time to resolve issues.

In countries such as Sweden, Finland and Ireland, the practice of setting up bad banks to address the credit crunch of financial institutions has been adopted. In Asia, South Korea and China have adopted this method.

But the question remains whether the government will have to rely on the exchequer for the capital to create the new bad bank system. One way is to issue bonds for bad bank capital. Another important hurdle would be the valuation of the assets to be transferred.

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