US Freedom Capital Blog

The Effect of PSU Bank Recapitalization on The Economy of India

Posted by David Gunderson on Dec 18, 2017 7:44:00 AM

India’s banks have long been suffering from a massive pile up of non-performing assets on their balance sheets. This puts a strong drag on credit growth, which is exacerbated due to the recent sluggishness in the economy because of demonetization, aggregate liquidity, and demand shock. After a three-year record low of 5.7%, the Union Government decided to issue a massive credit infusion into the economy – a move that would help put India’s banks on the path to recovery.

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Topics: India, Banking, Regulation

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