Indian banks to see capital decline over 2 years without fresh infusion: Moody’s
PTI, Nov 30, 2020, 4:31 PM IST
New Delhi: Moody’s Investors Service on Monday said the bank capital will moderately fall in emerging Asia over the next two years, with India seeing larger capital decline without further infusion.
In a report, Moody’s said the uncertain trajectory of asset quality is one of the biggest threats for emerging market banks, as operating conditions remain challenging amid the current COVID pandemic.
The 2021 outlook for banks in emerging markets is negative, while the outlook for insurers is stable, it said.
“In the Asia Pacific region, banks’ rising nonperforming loans and insurers’ volatile investment portfolios are in focus. Capital will moderately fall in emerging Asia over the next two years, and banks in India and Sri Lanka will post larger capital declines without public or private injections,” Moody’s said.
It said non-performing loans (NPLs) will rise most for banks in India and Thailand because of the greater shock to their economies and historically poor performance of certain loan types.
In India, stress among non-bank financial institutions will also curtail their capacity to lend, Moody’s noted.
“Profit growth will be modest because of low-interest rate and subdued lending, but lower loan volumes should aid capital,” Moody’s Managing Director Celina Vansetti-Hutchins said in the ”Emerging Markets Financial Institutions Outlook” report.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Epigamia founder Rohan Mirchandani dies of cardiac arrest at age 42
Lohia Auto launches EV brand ‘Youdha’, aims to sell 3 lakh vehicles by 2027
“FM ji FM ji, itna tax main kaise bharun”, asks investor Vijay Kedia in viral post
RBI: After another status quo year, all eyes on a growth-propping rate cut with new Guv at helm
Front-running case: Sebi bans 9 entities from market , impounds illegal gains of over Rs 21 crore
MUST WATCH
Latest Additions
Tanush Kotian replaces recently retired Ashwin in India’s squad
Newly recruited Meitei, Kuki personnel in Manipur police to be posted together: CM Biren Singh
Today’s Cong is ‘duplicate Congress’ led by ‘fake Gandhis’, claims Union Minister Pralhad Joshi
Belagavi: Assistant mahout killed by temple elephant
Ahead of Delhi polls, Kejriwal helps women, elderly register for welfare schemes
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.