India's shadow lending sector is in a 'better position' after two years of clean up, says bank chairman

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India's shadow lending sector is in a 'better position' after two years of clean up, says bank chairman
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India's shadow lending sector is in a 'better position' after clean-up efforts, says bank chairman

India's non-bank financial sector has been facing a crisis, with many "shadow lenders" struggling with bad assets and corporate governance issues.

Rajnish Kumar, chairman of the State Bank of India, acknowledged that India's non-bank financial companies — often referred to as shadow lenders — faces funding challenges, but he struck an optimistic tone about the outlook. "In the last two years, we have been doing clean-up and clean-up. So we are coming out of that," Kumar told CNBC's Karen Tso at the"Some which may be weak or facing solvency issues, that may still be a cause of concern and that needs to be washed out. But today, we're in a much better position," he said.in the past few years, with many non-bank lenders struggling with bad assets and corporate governance issues.

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