India facing financial sector crisis: Jaswant Singh

September 30th, 2008 - 8:54 pm ICT by IANS  

Bharatiya Janata PartyNew Delhi, Sep 30 (IANS) Bharatiya Janata Party (BJP) leader and India’s former Finance Minister Jaswant Singh Tuesday said the country’s faced an impending crisis in the financial sector, especially in the insurance and pension funds segments.“Banks are over-lending just like the US banks. I am informed that one of the leading banks has already called back two lakh (200,000) cars, bought by borrowed money from the bank,” Singh told reporters, trying to emphasise that domestic banks were treading the same path being taken by their American counterparts.

He criticised Finance Minister P. Chidamabaram for stating the global financial crisis would not touch India.

“It is a confusing and misleading statement that misdirects us in the face of the obvious,” Singh told reporters.

Singh further added that India must look into areas of instability.

“Real estate and consumer retail credit are two things to look out for. The artificially inflated real estate bubble is going to blast any day soon which will have serious consequences,” he said.

The banking and investment sectors across the world have been hit sharply after investment sector giants Lehman Brothers filed for bankruptcy and Meryll Lynch was sold off. This was followed by collapse of the American International Group (AIG).

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