ADVERTISEMENT
Recapitalisation Will Break Banks’ Downward Spiral, Says Credit Suisse
Banks must close the gap between estimated stressed accounts and gross bad loans reported, says Credit Suisse.
13 Nov 2017, 04:16 PM IST 
A pedestrian walks past State Bank of India and Canara Bank automated teller machines (ATM) in Mumbai (Photographer: Adeel Halim/Bloomberg)
The Rs 2.11 lakh crore recapitalisation will break the downward spiral threatening the banking sector, Ashish Gupta, managing director and head of research for Credit Suisse, told BloombergQuint.
Earnings for the September ended quarter so far have not revealed new areas of stress for Indian lenders but banks do need to close the gap between stressed accounts and gross bad loans reported, he said. Gupta expects the gap to be around 5-6 percent of all loans.
Watch the full interview interview.