mo4ch:>India's dynamic economy set to grow even more – Goldman Sachs | Mo4ch News

India’s measures to improve the recovery of bad loans and a recapitalization plan equivalent to 1.1 percent of GDP will lower costs for lenders and boost the growth of Asia’s third-largest economy, according to Goldman Sachs.Analysts at the bank said that a decline in credit costs of Indian banks is likely to boost the capacity of lenders to extend loans and, in turn, boost GDP growth.“We estimate that credit costs – how much banks set aside each year to deal with bad loans – could fall from a peak of 230 basis points of banking system assets, or around 3.3 trillion rupees [US$48 billion], in FY18 to 120 basis points, or 1.9 trillion rupees, in FY20,” the analysts said, as cited by Bloomberg.Also on rt.comIndian rupee goes from worst to best-performing currency in AsiaThey added that: “This decline in credit costs would boost bank profitability, reduce headwinds to bank capital growth and enhance the capacity of the banking system to extend credit.”According to the analysts’ estimates…