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India: Country at a Crossroads

July 18, 2017 : Permanent Link

(Harvest) Bank asset quality is a major concern. According to the Reserve Bank of India’s (RBI) latest fiscal stability report, approximately 12% of Indian banks’ assets are stressed (non-performing loans/ require restructuring). As the banks’ non-performing loans (NPLs) are still increasing (see chart), this means there is less support for a private sector capital expenditure-led recovery.

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