Financing the recovery: Are banks in a position to partner India Inc?

The FSR projects a sharp increase in banks' gross non-performing assets by September 2021

Reforms in India started with the financial crisis of 1991. The country is in the midst of another. Shrinking government revenues means that there is only a little to go around to recapitalise state-run banks. A clear estimate of how much is needed will be evident only after the central bank’s forbearance measures in the wake of the pandemic are withdrawn. This holds true for private banks as well, though they are relatively better off, having raised close to Rs 60,000 crore in recent times.

Various macro indicators suggest an economic recovery. So the question is: Are banks in a