Goldman Sachs Group this month initiated coverage on Bandhan Bank Ltd with a “buy” call. Roiled by unprecedented frauds and surging bad debt, the nation’s state-run banks have returned the least to investors this year. The same could be said for Kotak’s peers as Goldman’s economists trimmed their growth forecast for India amid concerns that woes in the state-run bank sector are worse than thought. Bad loans across government-controlled banks are more than double total market cap. Half of India’s 22 state-run banks with 20% of the sector’s total loans are under the regulator’s strict Prompt Corrective Action program.

Source: Mint May 25, 2018 04:30 UTC