Banking industry’s 9/11

Anyone who exulted over S&P’s ‘upgrade’ of the Indian banking system—at least three major financial dailies had the same headline “S&P differs with Moody’s, upgrades banking sector”!—would do well to see how the Kingfisher crisis is unfolding. Aviation minister Vayalar Ravi has said he’d speak to finance minister Pranab Mukherjee about it but, given that he’s already asked states to try and lower taxes on aviation fuel, it suggests he will ask Mukherjee to ask banks to be generous in restructuring.

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