Asian credit correspondent
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The pipeline of share sales from India’s state-owned banks is in tatters after an alleged US$1.8bn fraud at the country’s second-biggest public sector bank revived concerns over bad loans and corporate governance in the sector.
India’s central bank has taken the unprecedented step of ordering some of the country’s weaker banks to redeem their capital securities ahead of schedule, triggering a debate over regulatory interference in the fixed-income sector.
India’s central bank has torn up its rule book on debt restructurings in favour of a standardised approach that gives major defaulters just six months to agree terms with their bank creditors.