A bank's race against crisis has served a warning to Indian banking

At more than $200 billion, India's world-beating pile of bad loans is bigger than Italy's

India’s fragile financial system is swinging between despair and hope. Two separate incidents — both featuring the lender YES Bank Ltd — recently underscored the drag of past underwriting follies as well as the lift from a digital reset. It will take time, but good things will come to Indian banking as a result of the present crisis. 
 

Start with the sudden default by financier Altico Capital India Ltd. on a 199.7-million-rupee ($2.8-million)  interest payment to Abu Dhabi-based Mashreqbank PSC. Clearwater Capital Partners-backed Altico, which borrows money from banks and mutual funds to make loans to property developers, called the situation