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throwawawy42348on India’s banking system is flirting with a Lehman moment

I don't think that's due to 'freedom of press'; I think it's probably more due to 'lack of intellect'. Don't worry this affects every other part of the world.

throwawawy42348on India’s banking system is flirting with a Lehman moment

... of course low credit rate means money has a tendency to go into unproductive sectors (ala Japan's Bubble heydays).

(I'm glad to see Economist reflect my understanding.)

throwawawy42348on India’s banking system is flirting with a Lehman moment

Indeed, I suspect demonetization was in part a scheme to replenish the reserves of the state banks.

throwawawy42348on India’s banking system is flirting with a Lehman moment

I'm not sure who the planned intervention is for, but it looks very much like it's for the corporate sectors.

The MSME sector, which is touted to employ 92% of India's labour has widely been reported as having taken a very bad hit after the double attack of GST and demonetization. RBI on the other hand is said to favor vulture funds (resembling IMF's 'solution' during the Asian crisis).

Then again, the Indian state has let high profile defaulter escape with impunity in the past few years. There are indications that this was done consciously, through PMO/CBI intervention.

All in all, I have very little trust in any institution of the Indian state.

throwawawy42348on India’s banking system is flirting with a Lehman moment

It's really not clear what's going on in the Indian state.

IL&FS apparently has funded quite a large number of infrastructure projects, which unlike Lehman have tangible value. NHAI, the state highways agency is said to owe a great deal of payments to IL&FS (rumoured to be on the order of $ 5 B).