Why is India Pumpting $32 Billion into its Banks?

India’s government on Tuesday announced a massive bank recapitalization plan worth tens of billions of dollars — a possible “game changer” for the country’s bad loans problem.The plan could not only provide cheer for investors worried about Indian banks’ worsening balance sheets, but it may also have far-reaching implications for the country’s economic prospects.The announcement has been awaited for a long time. India’s growing mountain of bad loans has created weak bank balance sheets, crippling the lending ability of financial institutions and hindering the country’s growth. That, in turn, makes debtors less able to pay off loans — creating a vicious cycle.

Source: India just said it’s pumping $32 billion into its banks — here’s why it matters – CNBC

The Aussie Dollar Plummets

There is a lot to digest

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.