A customer waits at a customer care counter at a bank branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
A large surplus of liquidity, alongside desire to grow loan books while keeping risk-taking to a minimum, could be leading to lending at rates which do not adequately compensate banks for the risk.These concerns over mispricing were highlighted by State Bank of India Chairman Dinesh Khara at an event in November, in the presence of Reserve Bank of India Governor Shaktikanta Das."I will not say that the risk people have assumed withou...