INSUBCONTINENT EXCLUSIVE:
$284 billion loan book is hardly worth celebrating
been largely responsible for their bloated nonperforming advances
those accounts can be written back as profits
confidence among nonbank financiers, is just the tip of the iceberg
carry over to property developers, some of which could lose access to short-term financing
With general elections due by May, the last thing the government wants is for builders to go bankrupt, abandoning projects and sending
construction workers back to villages
Subdued real-estate prices could hurt consumer sentiment
SBI has $79 billion at stake in retail loans, including mortgages
The bad-loan ratio for this group of borrowers is currently only 1.2 per cent, but it's worth watching.
Finally, easing the liquidity crunch
is the joint responsibility of the government and the central bank
But just when they should be working together, the finance ministry and the monetary authority are engaging in a very public slanging
Each time they were proved wrong
With so many genies waiting to be bottled, Kumar, too, should be cautious.
