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India’s Rajan Denies Risk of Banking Crisis as Bad Loans Mount

India’s banking system, battling the highest levels of stressed assets since at least 2001, is not close to a crisis, the country’s central bank governor said.

“Bad loans are primarily in the public sector system, which means that the full faith and credit of the government is behind that,” Reserve Bank of India Governor Raghuram Rajan said in an interview with Bloomberg TV India's Harsha Subramaniam on Wednesday in Mumbai. “I don’t think there is any risk of a crisis.”