Shivkumar Mani, the head of marketing for the Dewan Housing Finance Corp., an Indian shadow bank, is seen in this photo. India's shadow banks are experiencing increasing problems.
Editor's Note: This assessment is part of a series of analyses supporting Stratfor's upcoming 2019 Third-Quarter Forecast. These assessments are designed to provide more context and in-depth analysis of key developments over the next quarter. As growth in India's $2.6 trillion economy cools , the problems afflicting its shadow banking sector are increasingly coming to light. Shadow banks — also known as non-banking financial companies — are facing a cash crunch ever since a titan in the sector, Infrastructure Leasing & Financial Services, defaulted on its payments in September 2018. That event sparked fears of a contagion rippling through India's already sluggish corporate credit system.
