Governance, transparency in Indian banks weak by global standards: S&P

The lack of improvement in risk management and corporate governance in the coming growth cycle could produce a new crop of sour loans, the rating agency said

Rating agency Standard and Poor’s (S&P) on Tuesday said that while banks in India appear to have learnt lessons from bad-debt surges, their governance and transparency are weak by global standards. 

The lack of improvement in risk management and corporate governance in the coming growth cycle could produce a new crop of sour loans. More follow-through on governance reforms is required, especially for public sector banks, the rating agency said in a statement. 

It released a report titled "As India's Banks Grow Again, Will Old Mistakes Return?". 

The Reserve Bank of India (RBI) is tightening and equalising norms for bank