Banks remain benevolent despite bribe-for-loan charge
The chain of events since August 2014 raises serious questions about the extraordinary power that large borrowers seem to exert over lenders and the absence of any checks on the creation of new doubtful loans. Bhushan Steel has obtained a massive restructuring of its loan, without a murmur from the Reserve Bank of India (RBI) or the ministry of corporate affairs (MCA—which now supervises the draconian new Companies Act 2013) about the quality of the company’s management. 
Not once was there any mention of further action in the bribe-for-loan issue, let alone any reference to action by MCA against the company’s management caught bribing a bank chairman. The demand for asset sales also vanished; all that the company did was a sale and lease-back of its oxygen plant. Meanwhile, losses continued to mount. The stock price chart shows that investors are not at all impressed by the lenders’ and company’s action. 
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
Good to note that money Life makes all possible attempts to expose some of the irregularities and lapses and keeps a vigilant eye.
Nice article. If banks had indeed pursued with forensic audit, the extent of skeletons tumbling out of cupboards would have been hard to predict. This reminds of a dialogue from BBC serial Yes Minister "You should only set up an enquiry if you are sure of the findings of the enquiry beforehand”.
But someday the chickens would come home to roost.
In fact, this whole 'restructuring' business is a sham. If the RBI were to not come up with such fraudulent schemes, banks in India would have to report their true NPAs which would be several times the 'officially' stated values. And if the whole world were to come to know of the sorry state of banks in India and the economy in general, no one will invest in India.