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India's banking sector grapples with debt

Distressed loan buyers unable to help banks clean up their balance sheets

Asset reconstruction companies are striking mostly paper deals that help lenders extend provisioning by years, camouflaging the scale of their woes.


SET up over a decade ago to absorb India's mountain of distressed loans, asset reconstruction companies have done little to recover cash or relieve a debt-choked banking system.

Instead, at a time when regulators are pressing the banking sector to clean up balance sheets,...

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