Chart 4 below demonstrates that the Indian banking system has a high proportion of un-provided NPAs vis-à-vis the capital levels. As I said, there are signs of improvement in the default rates and recovery rates after the IBC and RBI’s Revised Framework, which may result in lower unexpected losses for banks in the future.
Australia and Canada have a shared interest in fostering progress on these fronts, which will involve encouraging both emerging countries and highly developed countries to move in ways that accommodate each other. I know my Canadian counterparts have worked assiduously on these issues for many years. We support those efforts.