Can RBI end India’s cronyism?
State Bank of India’s earnings have, thankfully, brought attention back to the issue of non-performing assets (NPA) in the Indian banking sector. It is one thing for the banking system to face the problems associated with business cycles as business enterprises do. However, it is another thing for banks to confront NPAs because of rampant political meddling. Indian banks suffer as much from political interference as the energy (oil and power) sector does.