Troubles among India’s non-bank financiers will persist for at least a year even if the danger of a full-blown financial crisis has passed, according to the head of the nation’s most valuable bank. Tighter regulatory oversight and asset sales have staved off the worst of the problems afflicting India’s non-bank financial firms following last year’s defaults by Infrastructure Leasing & Financial Services Ltd., according to HDFC Bank Ltd.’s Managing Director Aditya Puri. Shadow banks are still struggling to raise funds, including from the mutual funds which already hold about $46 billion of the sector’s debt, according to an estimate by Credit Suisse Group AG. Substantial ProgressUnder Puri, HDFC Bank has also skirted India’s bad-loan crisis, which hurt many of the country’s other lenders. For now though there is an adequate amount of money in the system to fund India’s economic growth, Puri said.

Source: Mint May 03, 2019 05:13 UTC