Andy Mukherjee writes ………In the match for India’s financial services future, fintech just scored twice while banks are still struggling to retrieve the ball they scuffed into their own net. It’s just the start of what looks like a bruising battle for traditional lenders.India’s banks, which still dominate the country’s financial landscape, appear to have hardly a kick left in them. Stressed assets without any loan-loss cover now exceed $96 billion, McKinsey & Co. said last week. An overwhelming 91 percent, or $87 billion, of the provisioning gap is at state-run lenders, whose net worth would be wiped out if they took the hit on their capital.Even as McKinsey was delivering this sobering reality check, fintech was running a victory lap of sorts. Paytm, a digital payments company, announced a $1.4 billion investment by Masayoshi Son’s SoftBank Group Corp. on Thursday, the largest funding round by a single investor in an Indian startup .
This is my view will create a double whammy for the banking system which has to not only continue cleaning up its bad debt but also face a Fintech threat backed by an enormous pool of Capital http://worldoutofwhack.com/2017/05/21/bricks-and-mortar-style-of-banking-is-in-an-existential-dilemma/