The counters in the banking hall of the state-owned Punjab National Bank in New Delhi, India. (Photographer: Sondeep Shankar/Bloomberg News)
Financial sector crises leave a long tail. That much has now been long proven. As such when India went into a clean-up of bank balance sheets, it was anticipated that the impact would play out over an extended time period, in many ways.But one assumption made at the time of the clean-up, which since proved to be incorrect, has worsened its impact. It was thought that as a truer picture of bank balance sheets emerges, these lenders wi...