Govt needs to cut political interference in state banks

News:

• India needs to minimise political interference in public sector banks, as the government announced measures to improve the performance of state-run banks that are struggling with rising bad loans.
• India’s banking sector has been hobbled by its highest bad-loan ratio in a decade as slower economic expansion hurt companies’ ability to service debt.
• While the pace of additions to bad loans has started slowing for most banks, higher provisioning is hurting their profits. State-run lenders also account for a majority of the sector’s bad loans.

Source: BS