Twin Balance Sheet
Twin Balance Sheet
Twin Balance Sheet Problem is all about public sector banks which linked directly to that of the corporate sector.
Twin balance sheet means that problem suffering balance sheets of both corporate sector and public sector banks. During the time of boom or applause years , the corporate sectors such as power, steel & infrastructure etc took a lot of money from PSU Banks . But present time slump in both these sectors, the corporate sectors profits goes down and unable to repay their loans and their debts are raising at an alarming levels . So they can't able to invest or park their money to others or new projects. So their balance sheets in trouble .
Due to this PSU banks NPA's also increase drastically , which result of this balance sheet of banks also in peril condition.This phenomina is called twin balance sheet problem.
This twin balance sheet word used in many banking and financing articles so knowledge of this topic is helpful for all .thanku.....
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