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India’s Shadow Banking Crisis Is Far From Over

  • Gauges compiled by Bloomberg show woes are far from over
  • Liquidity remains low, while shadow bank bond spreads are high
Updated on

A health check on India’s shadow banks shows the crisis in the industry is far from over.

Indicators from liquidity to share performance show weakness, according to data compiled by Bloomberg as of Sept. 30. In recent weeks, another financier defaulted, it got harder for investors to cut losses in the sector’s debt and a mortgage lender altered financing plans due to waning appetite for shadow bank bonds.