RBI: bank balance sheets appear to be on the mend

Turbulence of 2018 may have forced non-bank finance firms to face up to risks, says central bank

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The Reserve Bank of India’s latest financial stability report points to evidence that its attempts to clean up the banking sector have strengthened the country’s banks.

A hefty injection of capital by the government has also opened up room for banks to resume lending, the report notes. Meanwhile, India’s non-bank finance sector is recovering from recent problems.

“The Indian banking sector continues to show improvement as impairment ratios decline and credit growth picks up,” writes governor

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