Thus, in India we believe that, financial inclusion has the potential to bring in the unbanked masses into the formal banking system, could lead to increased savings, provide timely credit to the unbanked masses and all these positive externalities would lead to economic growth.
Some studies, including one by the International Monetary Fund in this April’s Global Financial Stability Report, have recently highlighted this vulnerability, so let me briefly offer my perspective.6 Despite the elevated levels of corporate borrowing, recent developments show signs of improvement. Leverage has declined slightly since its peak a year ago, and firms with high debt growth appear relatively healthy.