Sunday, August 14, 2011
Indian Banks taking over unperforming loans
ICICI Bank's takeover of a stake in a debt-laden telecom tower firm is an ominous sign of things to come as India's slowing economy and slumping shares erode the value of collateral on loans that companies are struggling to repay. More interestingly, the shares are in these companies are set as collateral for other loans. So when the price falls, the other performing sector will also fall in the dominos affect.