Indian banks: Hold your nose

One of India’s strengths is its companies. In general they are profitable, well-run and have healthy balance-sheets. But the country has long had pockets of indebtedness, too. A tradition of “promoters”—as individuals or families with controlling stakes are known—can lead firms to borrow rather than dilute down their masters’ stakes by issuing shares. A rabble of public-sector walking dead, from Air India to local electricity boards, bleed cash yet still get access to state-owned banks.

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