PNB Rs 114-bn fraud: Is it a threat or opportunity for investors?

But it may go into a long downward spiral before things turn around

When there's a crisis in an industry that's too important to fail, is it a threat or opportunity for investors? Analysts of Indian banking will be wondering about the answer. The non-performing assets (NPA) crisis has had a crippling effect. Banks have become cautious about fresh lending as bad debts mounted. They have also been trying to hide the extent of the problem. 

Raghuram Rajan started the process of forcing banks to recognise NPAs when he was the Reserve Bank of India (RBI) governor and the central bank has stepped up its efforts to force NPA recognition. In its last