NEW DELHI Feb 22 India needs to create a bad
bank quickly, the finance ministry's top economic adviser said
on Wednesday, supporting forthright views expressed by Viral
Acharya, the new deputy governor of the Reserve Bank of India.
Chief Economic Adviser Arvind Subramanian, who has proposed
setting up a public asset rehabilitation agency to fix the
balance sheets of both struggling banks and indebted companies,
said the government was in touch with the RBI on the matter.
Addressing banks' bad loans is the top priority of the
government, Subramanian told a news briefing, adding that it was
important for banks to get political cover to write down debts
they are unable to recover.
Addressing concerns about a recovery in global oil prices,
Subramanian said he was comfortable with crude at $65 per
(Reporting by Manoj Kumar; Writing by Douglas Busvine; Editing
by Swati Bhat)