Government support will only help banks meet regulatory requirements: Moody’s

• Moody’s Investor Service said the government’s capital support plan for banks will only be enough to meet regulatory requirements, and stress still remains for the sector.

• Without reforms, the government will have to inject capital into banks whenever they face stress, straining its own finances, the rating agency added.

• The banking sector is grappling with rising non-performing assets, which touched Rs 8.99 trillion or 10.11% of total advances as of 31 December 2017. Of the gross NPAs, the public sector banks accounted for Rs 7.77 trillion. The rising number of banking frauds has also become a serious cause for concern.

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