Maladies of the Indian Banking Sector: A Critical Perspective beyond NPAs

This book examines bank credit allocation to non-financial companies in India over 28 years, including a micro-level analysis of recent banking scams. It assesses whether weak banks are rolling over loans to less-deserving firms and avoiding declaring them as NPAs, contributing to understanding the nature of maladies and structural challenges in capital formation.

Format: Hardback
Publication date: 10 November 2022
Publisher: Cambridge University Press

This comprehensive book delves into a thorough examination of bank credit allocation to non-financial companies within the Indian corporate sector, spanning a remarkable twenty-eight years. In addition, the authors conduct a micro-level analysis in the context of recent banking scandals that have exposed the vulnerability and shortcomings of banks' governance in preventing the misappropriation of credit. By offering a broader perspective, the book aims to assess whether weak banks are granting loans to less deserving firms and intentionally avoiding recognizing them as non-performing assets (NPAs). This insightful contribution extends our understanding of the maladies beyond the conventional focus on studying NPA trends and provides a deeper insight into the structural challenges that shape the allocation of bank credit in the economy and the broader process of capital formation.

The book explores the intricate dynamics between banks and non-financial companies, shedding light on the factors that influence credit allocation decisions. It examines the role of bank governance, risk assessment, and market conditions in shaping the availability and terms of credit. The authors analyze the patterns and trends in bank lending to different sectors, including manufacturing, infrastructure, and services, and identify the factors that contribute to the growth and sustainability of non-financial companies.

Furthermore, the book takes a closer look at the recent banking scandals and their impact on credit allocation. It examines the role of regulatory oversight, corporate governance, and market discipline in preventing such incidents and ensuring the stability of the financial system. The authors propose reforms and strategies to improve the efficiency and effectiveness of bank credit allocation, including measures to strengthen risk management, enhance transparency, and promote responsible lending practices.

Overall, this book is a valuable resource for researchers, policymakers, and industry professionals seeking to understand the complex relationship between banks and non-financial companies in India. It provides a comprehensive analysis of credit allocation practices, sheds light on the challenges faced by the sector, and offers practical solutions to promote sustainable growth and stability.

Weight: 430g
Dimension: 236 x 157 x 20 (mm)
ISBN-13: 9781009225465