While there are several important issues that need to be addressed, one that requires immediate attention is the ailing banking sector. A robust and well-capitalized banking sector supports capital formation and economic activity by facilitating intermediation of resources between savers and borrowers. The Indian banking sector is dominated by public sector banks (PSBs) with a market share of roughly 70% of total banking assets. Another priority is to increase the resilience of the banking sector to losses. There has been some progress on improving the institutional and regulatory frameworks needed to support a strong banking system, although much more needs to be done.

Source: Mint January 29, 2018 01:41 UTC