India’s central bank governor has warned that the state-dominated banking system will need to push ahead with an infusion of funds to withstand the country’s deepening coronavirus crisis. Several of India’s largest and best-performing banks, including Kotak Mahindra, ICICI and State Bank of India, have been raising more equity in the months since the coronavirus pandemic broke out. But Shaktikanta Das, the Reserve Bank of India governor, said smaller private and public lenders needed to shore up their capital bases ahead of an expected bad loans shock. Banks “should proactively capitalise”, he told the Financial Times. “We need a healthy banking system to support the economy in normal times, and more so in a stressful time like this.”
Continue read: https://www.ft.com/content/c9cd44f4-f70c-42b5-adb5-f6063beee1cf
