Fitch sees 881b-rupee bank bailout easing India downgrade woes
Outlook on Indian banks may be revised this year to stable from negative once govt begins infusing cash
Mumbai
PRESSURE on the ratings of India's state-owned banks is set to ease after the government unveiled plans to inject 881 billion rupees (S$18 billion) of fresh capital to help the lenders meet looming Basel norms without hurting a nascent recovery in credit growth.
"The large recapitalisation is credit positive and will stem downward pressure on viability ratings, which have been cut several times over the last three to four years," Jobin Jacob, a Mumbai-based associate director at Fitch, said by telephone.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
BNP Paribas beats estimates as lower costs offset trading slump
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover
Barclays Q1 profit falls 12% as mortgage competition, deals drought hit
Deutsche Bank Q1 profit jumps 10% as investment bank outperforms
Latest Singapore 6-month T-bill offering cut-off yield of 3.74% as applications dip
Morgan Stanley Asia private equity unit to reorganise as CEO retires