 "Run-up to Budget 2018-19: India’s medium-term fiscal outlook under a cloud")
India’s economic and credit slowdown is revealing the strengths and weaknesses of its banking sector.
Roiled by unprecedented frauds and surging bad debt, the nation’s state-run banks have returned the least to investors this year. However, investors’ belief in the potential of Asia’s No. 3 economy shows in the fact that its newest lenders offer the best returns, and a clutch of private Indian banks are among the world’s most expensive.
For instance, AU Small Finance Bank Ltd.’s return-on-equity, a measure of profitability, was 56 percent compared with about 15 percent for China Construction Bank, 11 percent for
Roiled by unprecedented frauds and surging bad debt, the nation’s state-run banks have returned the least to investors this year. However, investors’ belief in the potential of Asia’s No. 3 economy shows in the fact that its newest lenders offer the best returns, and a clutch of private Indian banks are among the world’s most expensive.
For instance, AU Small Finance Bank Ltd.’s return-on-equity, a measure of profitability, was 56 percent compared with about 15 percent for China Construction Bank, 11 percent for
