India’s NPAs are at record low. Why it can be the most dangerous phase

India’s banks are in a healthier state than they have been in decades, as evidenced by the data. However, this same data also carries a warning. The last instance when optimism outpaced prudence resulted in a decade-long repercussion of the system. The sustainability of this recovery will depend not on the current appearance of clean balance sheets, but on how carefully banks conduct themselves now that they are in a position to be confident. The credibility of India’s banking recovery hinges on whether discipline is maintained when it is least politically and commercially convenient. Bidisha Bhattacharya explains in this week’s #ThePrintEconomix