The recently released Global Financial Stability Report by the International Monetary Fund brings out the following salient facts:
- The Indian industrial sector is now among the most heavily indebted in the world in terms of the ability of its cash flows to meet its bank loan repayments ; and,
- The Indian banking sector comes out as worse-off compared to other emerging economies in terms of how little bank capital it has set aside to provision for losses on its assets.
What does it mean to have little bank capital as provision for losses? I like the following analogy. A bank not keeping
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper