The Banking Mess in India

Yes bank has become a No bank. SBI and LIC are asked to rescue as the unfolding crisis, if not stopped, could take with it much larger numbers of financial intermediaries causing severe damage to the investing public at large. 

We are hearing about banking failures often nowadays. Every time sound bites are shared about what went wrong. Many consumers go through turmoil and some face losses. But after a while we get back to routine and wait for the next disaster to happen. 

Are we seeing any improvement at all this time around? When is it going to end or when will we see this kind of failures stop happening regularly and we stop seeing any failures of banks in the next few years? Are there any plans to stop such failures? If there is, can someone share so that an ordinary investor can be better informed, instead of hearing the same oft repeated cliche - 'this bank was sinking. Everyone knew about it in the last few months and we had informed our investors' is the common refrain which runs amongst those who give out sound bites post failures. They also add, a disclaimer, 'But nobody thought that the crisis was imminent'. Post the event of course there are voices, which say the Regulator should have intervened earlier.

What stands out through these events is the utter failure of the Banking Regulator to act in time as well as the colossal and irreparable damage caused by our rating agencies to dish out high ratings to unworth companies. 

It is time this is reset. This time around Tirumala Balaji had a narrow escape as He encashed(and not renewed) His Rs 1300 crore FD with Yes Bank; but His avatar Lord Jaganath was caught. He lost a Rs 545 crore.(source The Hindu)

Gods may not be so kind next time around.