The easing of lockdown restrictions in the last few weeks and the consequent resumption of economic activity has offered a degree of relief to industry and small businesses. While this is welcome, it is important to remain watchful of the fact that the underlying stresses on India’s financial system have not abated in the slightest. The NPA overhang in banks and NBFCs remains dangerously high and will probably worsen before it improves. More liquidity and cash flow challenges lie ahead and CFOs and business managers must remain alert. Adit Jain shares his insights.

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