02183cas a2200337 a 4500 AALejournalIMF022669 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400206665 1018-5941 BD-DhAAL BD-DhAAL George, Siddharth. India's Banks : Lending to Productive Firms? / Siddharth George, Divya Kirti, Soledad Martinez Peria, Rajesh Vijayaraghavan. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Capital misallocation is widely thought to be an important factor underpinning productivity and income gaps between advanced and emerging economies. This paper studies how well Indian banks allocate capital across firms with varying levels of productivity. The analysis reveals that the link between productivity and bank credit growth is weaker for firms with significant ties to public sector banks, especially in years when public sector banks represent a large share of new credit. Large flows of credit to unproductive firms represent important missed growth opportunities for more productive firms. These results suggest that measures to improve governance of public sector banks, potentially including privatization, would help reduce capital misallocation. Mode of access: Internet Banks imf Depository Institutions imf Financial Markets and the Macroeconomy imf Micro Finance Institutions imf Mortgages imf Kirti, Divya. Martinez Peria, Soledad. Vijayaraghavan, Rajesh. IMF Working Papers; Working Paper ; No. 2022/073 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=073 IMF e-Library