Moody’s Investors Service on Thursday changed the outlook for Indian banking system to negative from stable, as it expects deterioration in banks’ asset quality due to disruption in economic activity from the Coronavirus outbreak. It said Banks’ asset quality will deteriorate across the corporate, small and medium enterprises and retail segments, leading to pressure on profitability and capital. Interactive map of confirmed coronavirus cases in India“We have changed the outlook for the Indian banking system to negative from stable. “Growing solvency stress among non-bank financial institutions will increase risks to banks’ asset quality because banks have large exposures to the sector,” it added. Moody’s rates 16 commercial banks in India, which together account for around 75 per cent of deposits in the system.

Source: The Hindu April 02, 2020 04:36 UTC