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An existential crisis for banking sector?

The business model of banks is under threat. While they need to reinvent themselves, both banking and market regulators must take a close look at the evolving landscape

An existential crisis for banking sector?
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In each strategic sector, no more than four state-owned companies will exist

Tamal Bandyopadhyay
Indian corporations are on a deleveraging spree.

The CEO of a large bank says between the last financial year and the first five months of the current year, corporate India has cut its debt burden by at least Rs 2 trillion. A large portion of this is done by refineries, steel makers, fertiliser producers and those companies that produce mining and mineral products, and textiles. They are replacing high-cost debt with cheap money, raised from the market, and sale of assets.

In the financial year 2021, corporations raised Rs 14.87 trillion from the market through bonds — 40 per cent higher than
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Sep 20 2021 | 12:56 AM IST

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