IFR travelled to Baku, Azerbaijan, in early May to host a full house of around 200 delegates at a luncheon seminar during the Asian Development Bank’s annual meeting.
IFR Asia High-yield bonds Roundtables 2015: Participants
IFR ASIA: Welcome. Let’s kick things off with the state of play in Asia’s banking sector. Where are we in terms of meeting global regulatory requirements, and how is that affecting lending?
ARUNDHATI BHATTACHARYA, SBI: Of course I don’t agree that we don’t have a sound banking system! If you look at India, one of the reasons for the large amount of NPLs was the fact that we had a large amount of infrastructure built in the country at a particular period of time. And all of the heavy lifting was done by the commercial banks. They had 10-year money, and as a result all of this funding was done on a 10-year basis, with the expectation that repayments would happen in an average time of 7½ years. Now you cannot have 30-year assets being paid back in 7½ years. You’re looking at disaster if you do that, and that’s exactly what has happened.