Rating agency Fitch today hinted at revising its outlook on domestic banks to stable from negative next year provided the government front-loads a substantial part of the Rs 2.11 trillion recapitalisation. The agency said has had a negative sector outlook on the country's banks for many years. In October, the government had announced a Rs 2.11 trillion capital infusion for public sector banks over the next two years. Of this, Rs 1.35 trillion will be through the recapitalisation bonds, while remaining Rs 76,000 crore from the budgetary support. "However, recapitalisation coupled with resolution of some large NPL accounts could mean that asset-quality parameters may eventually witness some stability after FY18," the report said.

Source: dna November 30, 2017 11:54 UTC