, Columnist
Indian Banks' Poisoned Chalice
Lenders are in the crosshairs for robbing the nation of its demonetization rewards.
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As if the distress caused by India's cash ban wasn't enough, somebody started a rumor on Monday that Axis Bank Ltd., the country's third-largest private sector lender by assets, would have its license revoked.
Axis had to issue a statement to quell the speculation. But while this may have been a brief panic, the message to investors and analysts is clear: Operational and reputational risk for India's banking system has surged uncontrollably since the government's Nov. 8 move to outlaw 86 percent of the country's cash.