The assumption until recently was that Indian banks were moving from the first stage to the second—from recognition to resolution. Indian banks have the highest proportion of non-performing assets (NPAs) among large cap peers in the region. The upshot is that Indian banks continue to serve fresh surprises to investors each quarter. This is also why the financial markets are generally valuing Indian banks at a discount to their reported book value. Can the Indian banks resolve their bad loans problem in a reasonable time period?

Source: Mint November 08, 2016 19:59 UTC