IMF flags concern over India's high stock of bad bank loans

Officials say bad debt recovery process should not be hindered. Also, growth should be more inclusive

The International Monetary Fund (IMF) is concerned about Indian banks’ high stock of bad debts and sees as ‘extremely important’ the continuation of institutional mechanisms to recover soured loans. 

The Fund was also concerned about India’s high government debt-to-gross domestic product (GDP) ratio, at nearly 70 per cent, and which could rise further, following populist measures taken during and after the general elections. 

The country also continues to grow at a high rate of over 7 per cent, at a time when about 70 per cent of the world economy is witnessing a downturn. The growth, however, should be more inclusive, even