1. Ever since the global financial crisis - India has beentrying to come to grips with its twin balance sheet (TBS) problem -” over-leveraged corporates and the bad-loan encumbered banks. 2. But a decisive resolution has proved elusive - and the problem has continued to fester. 3. Perhaps it is time to consider a different approach -” a centralised Public Sector Asset Rehabilitation Agency (PARA) that could take charge of the largest - most difficult cases and make politically tough decisions to reduce debt. 4. For some years - it seemed possible to regard TBS as a minor problem - which would largely be resolved as economic recovery took hold. But the problem has only worsened. 5. With balance sheets under such strain - the private corporate sector has been forced to curb its investments - while banks have been reducing credit in real terms.