{"id":533,"date":"2015-11-04T07:30:02","date_gmt":"2015-11-04T07:30:02","guid":{"rendered":"https:\/\/sunkrish.com\/?p=533"},"modified":"2017-01-13T06:47:07","modified_gmt":"2017-01-13T06:47:07","slug":"moodys-raises-indian-banks-outlook-to-stable","status":"publish","type":"post","link":"https:\/\/sunkrish.com\/index.php\/2015\/11\/04\/moodys-raises-indian-banks-outlook-to-stable\/","title":{"rendered":"Moody’s Raises Indian Banks’ Outlook to Stable"},"content":{"rendered":"

<\/a>Rating agency Moody’s Investors Service revised its outlook on India’s banking system to “stable” from “negative” on Monday, saying an improving economy would help temper problem-loans on banks’ books.<\/p>\n

Moody’s, however, cautioned that any recovery in asset quality would be gradual given the high debt levels in Indian companies.<\/p>\n

Indian banks, particularly state-run banks, have been saddled with bad loans estimated at nearly $50 billion as the economy slowed sharply in the last three years.<\/p>\n

But recent earnings reports, including from top private sector lender ICICI Bank, suggested asset quality may be stabilising.<\/p>\n

Moody’s said it expected India’s economy to grow around around 7.5 per cent in 2015 and 2016 each, supported by low inflation and gradual implementation of structural reforms.<\/p>\n

“The stable outlook on India’s banking system over the next 12-18 months reflects our expectation that the banks’ gradually improving operating environment will result in a slower pace of additions to problem loans, leading to more stable impaired loan ratios,” Moody’s said in the statement.
\n“However, the recovery in asset quality will be U-shaped rather than V-shaped, because corporate balance sheets remain highly leveraged.”
\nMoody’s also noted that capital levels remained weak for state-owned banks, with common Tier 1 ratios of only 6 to 10 per cent, though lenders retain plentiful of access to funding and liquidity.<\/p>\n

Moody’s had downgraded India’s banking system outlook to “negative” in November 2011.<\/p>\n

The ratings agency had upgraded India’s sovereign outlook to “positive” in April, while retaining its rating at “Baa3”.<\/p>\n

Source: http:\/\/profit.ndtv.com\/news\/banking-finance\/article-moodys-ups-indian-banking-sector-outlook-to-stable-1238974<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Rating agency Moody’s Investors Service revised its outlook on India’s banking system to “stable” from “negative” on Monday, saying an improving economy would help temper problem-loans on banks’ books. Moody’s, however, cautioned that any recovery in asset quality would be … Continued<\/a><\/p>\n","protected":false},"author":1,"featured_media":3247,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,493,5],"tags":[310,311,314,298,305,304,302,294,321],"class_list":["post-533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-corporate-services","category-economy-business-updates-corporate-affairs","category-india-international-corporate-updates","tag-bank","tag-corporate","tag-debt","tag-ease-of-doing-business","tag-economy","tag-foreign-direct-investment","tag-international","tag-investment","tag-moody"],"_links":{"self":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/comments?post=533"}],"version-history":[{"count":2,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/533\/revisions"}],"predecessor-version":[{"id":3248,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/533\/revisions\/3248"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media\/3247"}],"wp:attachment":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media?parent=533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/categories?post=533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/tags?post=533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}