The Indian banking industry avoided the 2008 global financial collapse. However, they immediately started a lending frenzy to large corporations, planting the seeds of a disaster they had created themselves. The PSBs gleefully funded infrastructure projects that were never granted the necessary permits, mines whose output was rendered much less valuable by falling commodity prices, and more.

For years, the PSBs have attempted to downplay the issue, but the RBI is now compelled to acknowledge the full extent of the harm. In 2008, the Indian banking industry escaped the global financial collapse. But as soon as they did, they went on a lending binge to large corporations, planting the seeds of a disaster they had created themselves.

The PSBs gleefully invested in infrastructure projects that were never granted the necessary licences and mines whose output was rendered significantly less valuable by falling commodity prices. For years, the PSBs have attempted to downplay the issue, but the RBI is now compelled to acknowledge the full extent of the harm.