Why India's financial sector is in trouble | FT

The FT's Benjamin Parkin explains what's behind India's banking crisis and why it could spread to the real economy

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[Shiach]

Modi tried to destroy informal economy to incorporate it into formal economy so that he can show high growth. But it backfire very badly.

[arbaz]

But according to Howdy Modi everything is fine back in India.

[poli]

started with a slight higher level of economt 70 years ago than China, the economy of democratic India is now less than 25% of chinese economy, maybe this is the reason India is always loved and praised by westerm medias, whereas China is always hated.

[mightbesherwood]

Nice charts, but I blinked and missed them.

[MrTomtomtest]

The good news, as per your first chart, is that foreign banks don't seem involved enough for the problem to propagate.

[thomas]

Lenders need to be measured on both the quantity and quality of their loan books. High growth usually means too much quantity and not enough quality.

The nature of banking is such that when things are good they are very good but as soon as loans sour it becomes a crisis.

[gokurockstar]

Tea effect 👍soon every Indian will buy torn underwear from OLX

[luxushauseragency]

India will be fine. The problem is not unique, solutions are widely available because of the failures and lessons learnt from banks in Europe and the USA.

[smanasalam]

A systematic collapse which was predicted by Raghuram Rajan who insisted on high interest rates and curbing credit by instigating stricter controls and targeting inflation to which sadly no one listened at the time. It's just the beginning and sadly not the end.

[TheDonMan]

Honestly surprised how India managed to escape from this disaster. Now, the very same bank turned over 200 million USD in profit which is honestly surprising

[xyd]

Do demonetization in India have any influence to this?

[madeinchina]

The solution is to open the market to China so that Indian people can buy cheaper products, save money to pay back the loan.

[hazardv]

CNBC national, please read my request. I am a 17 year old boy from Visakhapatnam, Andra Pradesh and I sincerely request you to tell people of present india's condition because people who were poor are becoming poorer and I have never seen any big step to avoid poverty, and I hope you will spread the message so it reaches our prime minister, shri. Narendra Modi to take action against poverty and the second problem is education system . Please make people aware of that . Thank you
yours sincerely,
G. SASHANTH RAJU

[hugglescake]

After India's independence, I wonder where they would be now if they decided to align themselves to the West and not the Soviets.

[chfgbp]

Familiar story in a lot of developing economies, right now, not just india.

[Avengerie]

They should book this guy to announce the coming financial crisis.

[neondrivercartman]

OMG it's Canada 4 years from now!

[williamwilson]

Why can’t bank executives be arrested here in the US?

[shravan]

Inflation is in all time low, salaries of middle class has gone up, income tax slashes have happened and still all Indians will blindly believe this man who speaks English. #colonialmindset

[arshaddarrif]

Sub changa siii
Morans: Modi Modi Modi