Indian banking during the past decade

The last decade was a tumultuous one, punctuated by two asset bubbles -- the first related to the stock markets (and NBFCs [non banking finance companies] in India), the second to real estate. Both shared familiar characteristics: rampant speculation and greed, leading to risky bets, be it backing internet start-ups with no chance of profitability, or paper assets backed by low-income families who had no way of redeeming their mortgages, resulting in big failures in the banking sector as well as global recession. The Indian banking system has largely been insulated from the global credit contamination and banks have grown steadily, thanks to our conservative policies and tight regulatory frameworks.