Two of four indicators compiled by Bloomberg that reflect the state of non-bank financial companies strengthened last month from October
The fortunes of India’s shadow banks are showing tentative signs of recovery, indicating that a prolonged credit crisis may be beginning to ease.
Two of four indicators compiled by Bloomberg that reflect the state of non-bank financial companies strengthened last month from October. A measure of top-rated five-year bond spreads got better, showing that shadow lenders’ borrowing costs are declining. A custom gauge of shares of 20 financial firms and other companies improved.
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A recovery in the health of shadow banks, which play a vital role in getting money to everyone from small merchants to property tycoons in Asia’s third-largest economy, suggests that steps taken by the authorities to help the sector may be working. Prime Minister Narendra Modi needs to kick-start lending to shore up consumer confidence and boost economic growth.
Source: Business Standard
