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National Bad Bank: What it is and how it will work
Amid calls for the formation of a bad bank, Finance Minister Nirmala Sitharaman proposed the creation of the special vehicle to house the bad debt in the Union Budget announced last week. Creation of a special vehicle to house banks' sour debts was welcomed by the majority in the industry as a move which will help state-owned lenders in conserving capital which has to be otherwise set aside as provisions. But, what is National Bad Bank and how it will work? Business Standard's Abhijit Lele explains the government's idea in detail. Watch the video for more.