Fitch On Indian Banks

The situation is particularly critical for mid-sized state banks that have seen the sharpest deteriorations in their financial profiles in the last few years, the ratings agency added.

According to Fitch distributable reserves at small-to-mid-sized state banks were down by one-third in this fiscal during the nine month period as compared to last fiscal's corresponding period.

Rating agency Fitch has downgraded its outlook on the Indian banking sector to negative, from stable, due to more downside risks emanating from rising stressed loans and weak corporate earnings, which may further roil banks.

The new Insolvency and Bankruptcy Code will help improve environment for creditors over medium to long term but effective implementation will remain key and may take time, Fitch Ratings said on Friday.

International ratings agency Fitch on Thursday said banks' non-performing assets ratio is likely to improve marginally to 10.9 per cent by the end of this fiscal year.

Indian banks are stable but there will be challenges ahead for state-owned banks given weak core capitalisation and slow earnings recovery, Fitch said on Thursday.

Fitch Ratings on Tuesday said the growth in non-performing loans (NPLs) of the Indian banking system will slow down in the current fiscal and some green shoots are visible with regard to their asset quality.

Indian banks are expected to significantly increase their issuance of Additional Tier-One (AT-1) debt over the medium term to address weaknesses in capitalisation, global credit rating agency Fitch said on Monday.

Rating agency Fitch on Monday said Indian banks will require more than $200 billion (about Rs 12 lakh crore) in fresh capital as they prepare for the full implementation of Basel III capital requirements by March 2019.

The course of the Indian economy is uncertain in light of the on-going parliamentary elections, with the results due to be announced on 16 May 2014. Once the next coalition starts implementing its economic policies, it will become clearer whether the economy can return to a higher sustainable growth path or whether it remains stuck at current level...

Foreign banks with 20 or more branches are anyway obliged to comply with the broad and sub-targets under PSL, and have until FY18 to do so. However, their ability to achieve this remains largely untested, as even Indian banks find it hard at times to meet these targets on a consistent basis. Moreover, meeting PSL guidelines may alter risk profiles ...

These include six government banks (including an international banking subsidiary of a government bank), two private banks and two wholly owned government institutions.

India's auction of quotas allowing foreign investors to buy bonds attracted strong demand on Wednesday, easing some of the concerns about whether a recent sell-off in markets would reduce demand for domestic debt.

Fitch Ratings has maintained its negative outlook on the Indian economy, citing poor performance in policy implementation as well as the general elections scheduled for 2014, despite encouraging signals from the government and a positive momentum in achieving fiscal consolidation.

The situation is particularly critical for mid-sized state banks that have seen the sharpest deteriorations in their financial profiles in the last few years, the ratings agency added.

According to Fitch distributable reserves at small-to-mid-sized state banks were down by one-third in this fiscal during the nine month period as compared to last fiscal's corresponding period.

Rating agency Fitch has downgraded its outlook on the Indian banking sector to negative, from stable, due to more downside risks emanating from rising stressed loans and weak corporate earnings, which may further roil banks.

The new Insolvency and Bankruptcy Code will help improve environment for creditors over medium to long term but effective implementation will remain key and may take time, Fitch Ratings said on Friday.

International ratings agency Fitch on Thursday said banks' non-performing assets ratio is likely to improve marginally to 10.9 per cent by the end of this fiscal year.

Indian banks are stable but there will be challenges ahead for state-owned banks given weak core capitalisation and slow earnings recovery, Fitch said on Thursday.

Fitch Ratings on Tuesday said the growth in non-performing loans (NPLs) of the Indian banking system will slow down in the current fiscal and some green shoots are visible with regard to their asset quality.

Indian banks are expected to significantly increase their issuance of Additional Tier-One (AT-1) debt over the medium term to address weaknesses in capitalisation, global credit rating agency Fitch said on Monday.

Rating agency Fitch on Monday said Indian banks will require more than $200 billion (about Rs 12 lakh crore) in fresh capital as they prepare for the full implementation of Basel III capital requirements by March 2019.

The course of the Indian economy is uncertain in light of the on-going parliamentary elections, with the results due to be announced on 16 May 2014. Once the next coalition starts implementing its economic policies, it will become clearer whether the economy can return to a higher sustainable growth path or whether it remains stuck at current level...

Foreign banks with 20 or more branches are anyway obliged to comply with the broad and sub-targets under PSL, and have until FY18 to do so. However, their ability to achieve this remains largely untested, as even Indian banks find it hard at times to meet these targets on a consistent basis. Moreover, meeting PSL guidelines may alter risk profiles ...

These include six government banks (including an international banking subsidiary of a government bank), two private banks and two wholly owned government institutions.

India's auction of quotas allowing foreign investors to buy bonds attracted strong demand on Wednesday, easing some of the concerns about whether a recent sell-off in markets would reduce demand for domestic debt.

Fitch Ratings has maintained its negative outlook on the Indian economy, citing poor performance in policy implementation as well as the general elections scheduled for 2014, despite encouraging signals from the government and a positive momentum in achieving fiscal consolidation.