Decadal perspective: Banks have fewer bad loans under the Modi govt

Challenges

Banks have fewer bad loans than before but face a challenging time mobilising low-cost deposits. This has been a headwind for profitability
 

There has been a rise in unsecured lending. The RBI has expressed concerns over lending practices

Takeaways

Push for preparing financial sector to meet investment needs through a focus on factors including capacity, skills and regulatory framework
 

International financial services centre encouraged to draw global players