The Hindu Business Line : Sub-prime crisis brewing here, warns Tarapore

by Gilbert Keith

The Hindu Business Line : Sub-prime crisis brewing here, warns Tarapore
India is headed towards its own home grown sub-prime credit crisis, as there has been a scorching pace of credit expansion in the past four years, says Mr S. S. Tarapore, former Deputy Governor of the Reserve Bank of India.

Addressing a seminar on risk management, Mr Tarapore said that it was wrongly believed that such as personal loans, credit cards, real estate, housing and capital markets were not really risk prone and, hence, lending to these sectors reached compulsive proportions.
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I’ve been hearing about this for while. We were discussing banking crises and mortgage crises in Econ, and I just read about this. Thought I might share…

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