Does India need a government sponsored stressed asset fund?

The Indian government is considering setting up a stressed asset fund, minister of state for finance Jayant Sinha confirmed on Tuesday. There has been talk that such a fund would be set up under the aegis of State Bank of India, the country’s largest lender, which, along with others, is weighed down by a pile of bad debt. While Sinha, a former fund manager himself, did not give details of the fund, he said it would be “significant.”