Bank Stocks in India - are they at unrealistic levels...

There has to be a corrective fall . One cannot run investments by reform expectations when there could be fear of non disclosed non performing assets. The regulators have not been effective. Banks which have had huge NPAs in 1990s continue to run in different formats in the same league. There have only been cosmetic management. The creation of additional top management posts cannot solve the pregnant issues which has the sector in pains but refuses to deliver. Things are so bad that the Prime Minister has sent a message to bankers and regulators to 'stop lazing' around. Restrictive Unionization and indifferent, accommodating management have added to the woes of the sector as much as mismanagement of credit portfolio. Name lending, adverse selection, high interest rates and poor credit off take are all being glossed over through speeches.  There is quite a bit of suspected cronyism   at  various levels.


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