Sunday, June 29, 2014

India's banking mess graphic for the day

This graphic below captures the shocking deterioration of bank balance sheets in the past three years. The share of stressed assets has more than doubled alarmingly.
Recapitalizing banks, thereby creating the space for further lending, should be the first priority of the new government. The revival of private investment, especially infrastructure spending, depends critically on this. It is therefore imperative that the forthcoming Union Budget provides the required allocation for recapitalization.  

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