Shadow Banks Show Signs of Recovery as India Economy Rebounds
- Two of four gauges compiled by Bloomberg point to improvement
- Spreads on non-bank lenders’ bonds declined to a five-year low
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The fortunes of India’s shadow lenders have been improving amid early signs Asia’s third-largest economy is rebounding from an unprecedented recession.
Two of four indicators compiled by Bloomberg that reflect the state of shadow banks strengthened last month from October. Shares of such firms that are part of the benchmark S&P BSE 500 index jumped two levels higher. The financiers also trimmed their debt piles, helping a gauge measuring their total outstanding debt burden to improve.