Mentor’s comment-
- https://indianexpress.com/
article/opinion/columns/ reserve-bank-bad-loans-india- national-asset-reconstruction- company-7634517/ - In the intro mention the NPA percentage of the public sector banks in India.
- In the body, mention the functioning of NARCL which give it a distinct edge such as faster aggregation of distressed assets, its SR carrying sovereign assurance etc.
- Conclude by mentioning that the major challenges lies in execution.
Id0000486418
Hello
Very generic answer; in intro mention gross NPA%, according to RBI’s financial stability report it was found to be 7.5% as of March 21.
Again in successes, your main argument is it will help in resolving NPAs..that is true..but mention how..talk about the differences in previous mechanisms and newly formed NARCL- faster aggregation of distressed assets that lie scattered across several lenders; its securitised receipts (SRs) carry sovereign assurance; price discovery would not be subject to later investigations; would initially focus on large accounts with debts over Rs 500 crore; expected to free the banks from the tortuous recovery process and afford them more space to focus on much-needed credit expansion- these points should be mentioned.
Challenges mentioned are fine- again you can mention some specifics such as low cost of acquisition of distressed assets.
You need to be a bit specific in economics questions..writing generic points will give very average marks..need to work a bit on the content. Go through the article for content building.
Conclusion is fine; keep practicing. 🙂