The last-minute scramble to cobble together a rescue plan for private lender Yes Bank underscores the need for a transparent, quick and effective resolution framework to deal with bank failures as the economy slows and financial markets become more complex.
Celebrity status comes with a risk. The high-profile chief executive of ICICI Bank Ltd. Chanda Kochhar, long considered a role model for women in business, is in the eye of a storm after allegations that her husband may have benefitted from the actions of a borrower of the bank.
While weaker market discipline at state-run banks is debatable, the problem of weak corporate governance, or self-discipline, isn't. It is this weakness that Mr. Patel hopes to overcome with tighter regulation.
Investors will be forgiven for wondering whether senior managers at Punjab National Bank are fans of Rip Van Winkle. How else can one explain the staggering volume of fraudulent transactions at India's second-largest state-backed bank by assets that went undetected for the past seven years?