The uncertain times continue for banks

It is difficult to say whether the banking sector will see the worst behind it by March 2020

Speaking at the Hindustan Times Leadership Summit earlier this month, Prime Minister Narendra Modi declared the emergence of India’s banking sector from the crisis of the past, aided by a spate of recent reforms by the government. The announcement was made weeks after Finance Minister Nirmala Sitharaman squarely blamed former Prime Minister Manmohan Singh and former Reserve Bank of India (RBI) governor Raghuram Rajan for the “worst phase” in India’s public sector banks which have dominant market share in Asia’s third largest economy.
 
Adding yet another dimension to the debate on the health of banks, RBI governor Shaktikanta Das