Originally Published in Madras Courier
Editorial Note
India’s Public Sector Banks (PSBs) have played a significant role in driving financial inclusion. It will be unwise to privatise them.
In June 2018, Investment Leasing & Financial Services Ltd (IL&FS), a prominent Indian conglomerate specialising in infrastructure financing, began defaulting on the repayment of short-term commercial paper and inter-corporate deposits amounting to Rs 450 crores ($54 million). This initial default set off a domino effect in the financial sector, exposing systemic vulnerabilities within the market.