Commentary: The Closer You Get, The Worse India's Banks Look

By all appearances, India's big state-controlled development banks seem to have escaped Asia's financial crisis. Local rating institutions give high marks to these banks, which have funded big steel, chemical, and textile companies. Brokers such as Credit Lyonnais and Goldman, Sachs & Co.'s local affiliate, Kotak Securities, even recommend the stocks of these lenders, which account for 12% of India's bank assets.

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