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Opinion
Mihir Sharma

India's Slow-Motion Bank Crisis

The solutions are obvious, the will lacking.
The government hasn't set aside enough to recapitalize banks.

The government hasn't set aside enough to recapitalize banks.

Photographer: Anindito Mukherjee/Bloomberg

India’s slow-moving banking crisis continues to drag on, as ponderous and unstoppable as the state-controlled banking sector itself. A recent study found that the gross “non-performing assets” of state banks rose 56 percent in 2016, and 135 percent in the last two years. They now account for 11 percent of all state bank loans.

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