It's an opportunity that a lazy banking system, obsessed with the collateral it's lending against rather than the business it's lending for, has handed on a platter to data miners. Capital First's retail assets have grown 24-fold in six years to about $3 billion. Its bad-loan ratio of less than 1 percent compares with almost 10 percent for banks. And the latter figure is an official estimate; the reality is probably a lot worse.  McKinsey has several suggestions on how Indian banks can deal with the mess: by quarantining assets that would eventually find their footing, liquidating those that won't, and working with professional asset managers to turn around debtors that lie in between. But even if the delicate surgery is successful, banks -- especially state-run ones -- will end up ceding a lot of ground to fintech.

https://www.bloomberg.com/gadfly/articles/2017-05-21/fintech-s-coming-to-slaughter-india-s-broken-banks