Don't bank too much on bank stocks

During Raghuram Rajan's tenure, the Reserve Bank of India started to force banks to strictly recognise NPAs

One axiom of modern economics is that a financial crisis takes longer to mitigate than a crisis in any other given sector. Finance is the life-blood of every sector and a crisis in finance affects every other sector. At a global level, we’ve seen this since the so-called Subprime Crisis in 2008. The global economy has still not fully recovered despite interventions by central banks.

India has been in the middle of an unacknowledged bank crisis since 2012-13. It started with the government opening up the liquidity tap to combat the second stage of the global financial crisis. At that stage,