Photo: MintMumbai: Scandals, bad debts, ATM cash shortages—India’s banking system has experienced them all in recent months and the bad run is starting to have repercussions for both the broader economy and Prime Minister Narendra Modi. India’s nearly $1.7 trillion formal banking sector is coping with $210 billion of soured or problem loans, and some regional banks have been ensnared in fraud scandals. “The problems in India’s banking system are self-inflicted mostly because of lack of due diligence,” said N.R. This is likely to have a negative impact on credit growth, with the banking system burdened by bad loans. Unlikely, and these problems in the banking sector are coming at a time when they are already grappling with large non-performing loans.” Bloomberg

Source: Mint April 23, 2018 04:18 UTC