, Columnist
India Is Missing the Wake-Up Call From Its Shadow-Bank Bust
Ratings companies and mutual funds refuse to heed lessons from the $12.8 billion bankruptcy of IL&FS Group.
Rana Kapoor’s diamond in the rough.
Photographer: Udit Kulshrestha/Bloomberg
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India’s finance industry is letting a good crisis go to waste by not learning from it.
The sudden $12.8 billion bankruptcy of infrastructure lender IL&FS Group, currently sequestered under a government-blessed, out-of-court process, underscores India’s lack of preparedness to handle a big shift in lending in recent years — away from banks.