10 years of banking sector: Pvt sector gains at cost of public sector banks

In the fourth of a six-part series, we look at the turning points in the banking sector

Soon after the credit crisis erupted in 2008-09, there was a sigh of relief that the Indian banking system was safe, thanks to the regulator debarring lenders from investing in toxic collateralised debt obligations (CDOs) or its derivative credit-default swaps (CDS). Indian companies seemed to be healthy, and a consensus was building up that India was decoupled from the global crisis. The jubilation was short-lived.
 
After 2008 meltdown
 
It quickly became apparent that Indian companies, in their quest for aggressive expansion, had bought companies overseas at steep premiums, but because of the slump in the global demand after