Retail stress is apparent on bank balance sheets—we must keep close watch
Over the past decade, one area of visible improvement in the Indian economy has been the resolution of the ‘twin balance sheet’ problem, in which the corporate borrowers were weighed down by heavy debt and the banking industry was hamstrung by record volumes of unproductive loan assets. A new bankruptcy code, aggressive write-offs, and recapitalization of state-owned banks helped clean up the mess.
