An indigenous Sub Prime Crisis?????

Recently i [accidentally] went on to read EPW and then to my surprise i went on to read a article about the increasing chances of Sub-Prime [mortgage] Crisis (yes!! same as that in US) in India..I would like to bring this issue up through this medium...

Globalization in India is at its best with most of the vernacular firms preferring organic growth to the inorganic and numerous private players entering in the country.The is the space for firms in each and every industry and numbers are soaring like anything.Same is the case with the Banking System.

Banking system was developed to help the poor and to help middle classes but today it seems that as "Globalization" is well underway ,banking is also becoming a business with the increasing competition from the private Banks.Even the public Sector banks are focusing more on the profits that can me made out of different lending options.Government is also thinking to increase the share of the Private sector in PSBs and this moves proves the governments focus on its earning rather than people.

Instruments like Credit Derivatives and numerous other devices that ensure secrutization are being offered by banks so to proliferate their businesses.Lucrative lending options with less interests rates are being offered to the one who can be incapable in returning the loan back.I would like to throw light on the fact that the prime reason behind the mortgage crisis was the complex instruments made by the banks and indiscriminate lending option,which in the end,confused the banks per se.Moreover the RBI's monetary report warns for the amount that consists of the outstanding loans which are remain yet to be paid and hence it has put temporary hold on the proliferation of Credit derivatives but the averse doesn't seem elusive.

So i think our intelligent Entrepreneurs and respectable government would do their best to avoid this catastrophic situation