Taxpayers are the biggest casualty in the government-approved bailout plan of YES Bank by a State Bank of India (SBI)-led consortium, says the latest report by global research and brokerage firm Macquarie.

Any bail out of a private sector entity by public sector undertakings (PSUs) / Government / taxpayers indeed creates a moral hazard, the brokerage firm said. “The fact that government is considering such a bail out proposal clearly shows the risk inherent in investing in PSU banks/companies who continue to be subjected to the vagaries and compulsions of the government. The ...