The Indian central bank is shutting down its halfway houses for debt addicts. If they still try to hide bad loans, the Reserve Bank of India will whack them.The timing of the change is interesting. Late last week, State Bank of India posted an unexpected quarterly loss, its first in 17 years. The real book values after properly accounting for asset impairment are much lower.When it comes to punishing managements who lie about bad loans, Indian lenders’ boards are wimps. Urjit Patel , Rajan's successor at the RBI, was biding his time because there was no capital to rescue the banking system.
Source: Economic Times February 14, 2018 02:26 UTC