The Indian banking sector is under a prolonged and severe crisis. Bad loans continue to grow and banks remain under-capitalized with profits in the red. As a result, credit growth remains muted, reinforcing the low jobless growth that India is suffering from. The BJP government and the RBI have failed to meet this crisis. Coupled with an avaricious corporate sector, they share responsibility for driving public sector banks (PSBs) to shambles. In fact, most actions of the BJP government and RBI have only accentuated the banking crisis while corporate sector seems to have gotten away scot-free and is now picking up stressed assets on the cheap at the Insolvency and Bankruptcy Code (IBC) auction.