According to the Economic Survey 2015-16, India is facing a “Twin Balance Sheet Problem”. It basically means
- the impaired financial positions of the PSBs, which are burdened with high non-performing assets (NPA) and the financial stress of the corporate houses because of slowdown in demand.
- the stress on the asset side as well as the liability side for the Public Sector Banks as well as the corporates
- the fall in credit growth of Public Sector Banks on the one hand coupled with slowdown in private investment in the economy
- the rise in the quantum of bad loans for the Public Sector Banks coupled with the weak fiscal situation of the Central government as well as State governments
The correct answer for yesterday’s question is 3. The explanation is as follows:
India’s export shares has declined for Europe and America while it has gone up for Asia ad Africa