India leads among emerging economies: IMF
Q. IMF has said India is the best among emerging economies. What are some of the concerns the country needs to address, according to the IMF?- Published on 11 Mar 16a. Stress from leveraged corporate balance sheets
b. Quality woes of state run banks to sustain recovery process
c. PSB balance sheet issues and deteriorating corporate profitability at 10 year low
d. All of the above
ANSWER: All of the above
India has performed best among the emerging economies though health of PSBs and corporates is a major worry. Vulnerabilities in corporate financial positions and public bank asset quality pose a risk to economic recovery and financial stability if not addressed in time. Corporate profitability is at a 10 year low, large companies are too leveraged and stressed assets in the system are over 14% with state run banks contributing the plan’s bulk.
