And now, the hangover

In case finance ministry mandarins are planning on using RBI’s improved profitability/asset quality summary to convince Moody’s that India’s credit rating needs to be upped a few notches, they’d be advised to read just a few more paras in the banking trends report that talks of the “emerging concerns” about “disproportionate growth in credit to sectors such as real estate, infrastructure ...” Infrastructure loans, to put matters in perspective, rose R90,000 crore in the last one year, from R4,70,000 crore last year in September to R5,60,000 crore in September this year. 

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