Whilst Paytm announced a $1.4 billion investment by SoftBank, McKinsey reported that India's banks, which still dominate the country's financial landscape, appear to on their last legs.
In the match for India's financial services future, fintech just scored twice while banks are still struggling to retrieve the ball they scuffed into their own net. It's just the start of what looks like a bruising battle for traditional lenders.India's banks, which still dominate the country's financial landscape, appear to have hardly a kick left in them. Stressed assets without any loan-loss cover now exceed $96 billion, McKinsey & Co. said last week. An overwhelming 91 percent, or $87 billion, of the provisioning gap is at state-run lenders, whose net worth would be wiped out if they took the hit on their capital. Capital Punishment Fully providing for Indian state-run banks' stressed assets would wipe out their net worth Source: McKinsey & Co.
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