Twin Balance Sheet Problem TBS frequently seen in news deals with which of these major problems Poor...........

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Twin Balance Sheet Problem (TBS), frequently seen in news, deals with which of these major problems?

Poor performance of the Public Sector Units (PSUs)
Non-performing assets in the Indian Banks
Debt accumulation on Indian companies
Accretion of foreign currency debt on India

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Explanation:

TBS is two two-fold problem for Indian economy which deals with:

Overleveraged companies – Debt accumulation on companies is very high and thus they are unable to pay interest payments on loans. Bad-loan-encumbered-banks – Non Performing Assets (NPA) of the banks is 9% for the total banking system of India. It is as high as 12.1% for Public Sector Banks. As companies fail to pay back principal or interest, banks are also in trouble. Higher cost, lower revenues, greater financial costs-all squeezed corporate cash flow leading to NPAs in the banking sector.