New Delhi, Dec 03 :
Global rating agency Moody’s gave a stable (Baa2) outlook to India’s banking system, driven by the ongoing progress on asset quality front and better operating environment. The stable outlook is based on Moody’s assessment of six drivers, all of which Moody’s assesses at stable. The six drivers are: operating environment; asset quality, capital; funding and liquidity; profitability and efficiency; and government support, the rating agency said in its report.
Moody’s rates 16 banks in India, 15 commercial and one policy bank. The 15 banks rated by Moody’s in the country together account for about 70 percent of assets in the system. Of the 15, 11 are state-owned, with weaker standalone fundamentals than private sector banks.
In it’s annual Banking System Outlook on India, the agency said that the environment will stay stable, supported by robust economic growth. Moody’s expects .
