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    HomeNewsOpinionSocialising losses is a bad idea, but PSBs have been doing it all along

    Socialising losses is a bad idea, but PSBs have been doing it all along

    Every loan loss mandates banks to provide fully for such loans. In turn, this impacts profitability and capital. In the case of PSBs, the burden of capitalization falls on the government.

    Dinesh Unnikrishnan
    August 07, 2024 / 08:01 IST
    State run banks have written off large amount of corporate loans in the last decade
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