The pace of economic growth has been slowing in India. As per the first advance estimates of the national income released by the National Statistical Office (NSO) in early January, the real GDP growth for Fiscal Year 2019 (April 2019 -March 2020) will slow-down to 5.0% (6.8% for FY2018), the lowest in the past 11 years. In addition to a stagnant rise in employment and income, declining financial intermediation function, associated with tight liquidity triggered by the issue of Non-Performing Assets (NPAs) in the commercial banks and the credit crunch problems of non-bank financial institutions, seems to have contributed to suppressing activities of the private sector. The government has introduced since last year a series of measures like tax cuts and infrastructure investment programs to prop up its economy while the Reserve Bank of India (RBI) implemented five interest-rate cuts (135 basis points in total) between February 2019 and October 2019. To improve financial intermediation function, the government has been promoting capital injection to and integration of the state-owned banks, together with improvement of framework for quick disposal of NPAs.