Some analysts have flagged the prospect of a sort of sub prime lending problem within India also. Though there are reports of accelerated emergence of non-performing assets in regard to consumer credit, housing and real estate in a few banks, our preliminary assessment, on the basis of information provided, is that these do not have systemic implications either in terms of solvency or liquidity.
It is pertinent to note that outside of budgetary support, which accounts for about 45 per cent of the total infrastructure spending, commercial banks are the second largest source of finance for infrastructure (about 24 per cent). 18.