Comments by "M Shastri" (@libshastra) on "54 yrs of Indira Gandhi’s bank nationalisation: A missed warning u0026 a telecom-aviation lesson" video.

  1. In Ep 1038, Shekarji talks about toxicity of Bank nationalization. The reality is Nehruvian Socialism was bad for everyone. Back then I said post the comment below, I will post it again. Let's put things in perspective. Govt has spent $40 billion dollars to recapitalize Public Sector Banks. That's $40 billion that you can't use to fund other priority issues. For $40 billion, - You can double the output of Nal Se Jal (It costs $60 Billion/yr) - Double the Capital expenditure of the Armed forces. Programs like MRFA/AMCA/Aircraft carrier/Light tanks etc. would get better funding - Salaries of Teachers in almost every state can be doubled with leftover money used for pensions - 15 more Metro lines in our Cities - Roughly 60 new expressways. Any one of those programs could have given better returns over recapitalization of PSBs.
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  2.  @bonaku20 votes. Bank employees and beneficiaries of loan waivers are a huge vote bank for Assembly elections. The Central Govt had no good reason to bail PSUs out, recapitalization is destabilizing and encourages moral hazard. Normally I'd support recapitalization because financially stability is important however everytime a PSU is recapitalized, it creates an environment of more bad lending that's worse than the previous round of recapitalization.
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