Photographer: Sanjit Das/Bloomberg

Here's Why The Pickup in India's Loan Growth Has Few Believers

  • Higher CP costs, falling dollar credit spur local borrowing
  • Strong revival in lending still some time away, analyst says

A rebound in loan growth to a 20-month high sounds like good news for Indian banks as they struggle to shake off the impact of a surge in bad debts. But a deeper dive into the reasons behind the revival shows it may be unsustainable.

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