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ArtikelHold Your Nose; Indian Banks  
Oleh: [s.n]
Jenis: Article from Bulletin/Magazine
Dalam koleksi: The Economist (http://search.proquest.com/) vol. 404 no. 8798 (Aug. 2012), page 56-57.
Topik: Banking Industry; Debt; Economic Conditions
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  • Perpustakaan Pusat (Semanggi)
    • Nomor Panggil: EE29.73
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Isi artikelOne of India's strengths is its companies. In general they are profitable, well-run and have healthy balance-sheets. But the country has long had pockets of indebtedness, too. A tradition of "promoters"--as individuals or families with controlling stakes are known--can lead firms to borrow rather than dilute down their masters' stakes by issuing shares. A rabble of public-sector walking dead, from Air India to local electricity boards, bleed cash yet still get access to state-owned banks. And a boom in infrastructure projects, from roads to power stations and airports, is being paid for with debt. Some of these projects are now in trouble because of red tape and a slowing economy. All of this fuels concern that India has a bigger bad-debt problem than the rather stable level of banks' official "non-performing" loans suggests. Just how big is unclear because many loans have been labelled as "restructured". This means their terms have been softened but that they are not formally recognised as bad debts.
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