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
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
Barclays is the latest firm to face anti-ESG wrath in Oklahoma
Barclays prices mortgage-backed notes in deal with GoldenTree
TD risks an earnings hit from US laundering probe, analysts say