The Adani Group has been a hot topic of debate lately, but will the controversy surrounding it lead to a systemic risk for the nation’s banking sector or impact the fund raising ability of other Indian firms? According to Santanu Sengupta, chief India economist at Goldman Sachs Inc., the answer is a resounding no.
In an interview to Bloomberg Television’s Rishaad Salamat and Haslinda Amin Friday, Sengupta said that India’s banking system is in a much better position compared to the last decade, and this is the main lever for funding investment cycle. He went on to say that other entities should not find it difficult to raise debt or borrow from the banking system as capital positions are the best in the last 15-20 years.
As such, the controversy surrounding the Adani Group will not have any systemic risk for the nation’s banking sector or impact the fund raising ability of other Indian firms. This is great news for the Indian economy, as it allows businesses to have access to the capital they need to continue to grow and thrive.
The banking system in India is also in a much better position than it was a decade ago, with capital positions being the best they’ve been in 15-20 years. This means that businesses are able to access the capital they need to keep their operations running and to continue to grow.
The findings from Santanu Sengupta’s interview to Bloomberg Television are a huge relief for the Indian economy, as it shows that the controversy surrounding the Adani Group will not have any systemic risk for the nation’s banking sector or impact the fund raising ability of other Indian firms. This is great news for businesses in India, as it allows them to access the capital they need to keep their operations running and to continue to grow.
Source: www.bloomberg.com