Combination of weak banks and corporates leaves India vulnerable says IMF

Vastavam web: The IMF today said a combination of weak banks and corporates leaves India vulnerable to a tightening in the global financial conditions, as it pressed for more steps to ensure good capitalisation in public sector banks.A recent study, according to International Monetary Fund Financial Counsellor Tobias Adrian, showed that Indian banking sector was vulnerable given that large segments have low profitability and have large problem loans.Gross non-performing assets (NPA) of the public sector banks rose to Rs 6.41 lakh crore at the end of March 2017 as against Rs 5.02 lakh crore a year ago, according to a Finance Ministry data.