Default Jitters Calm for Indian Lenders on $12 Billion Boost

  • RBI allowed banks to treat some balance sheet items as equity
  • India adds about $12 billion in capital to state-run banks

Men look up at an electronic ticker board that indicates stock figures at the Bombay Stock Exchange (BSE) in Mumbai, India, on Tuesday, Aug. 25, 2015. Indian stocks advanced in volatile trading a day after the benchmark gauge plunged the most in six years, as banks helped counter declines in software exporters.

Photographer: Dhiraj Singh/Bloomberg

Default risk for Indian banks is dropping after the government promised a fund infusion for state-owned lenders to clear soured loans and the central bank relaxed rules on their capital buffers.

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