SINGAPORE : An improvement in India's macroeconomic conditions is likely to alleviate stress for the country's banking sector, S&P Global Ratings said on Wednesday. S&P classifies India's banking sector in group '6' under its banking industry country risk assessment. India's economic risk trend is stable, said the global rating agency. Upside to the economic risk score will emerge when the economy rebounds, SME performance show signs of stabilisation, bank non-performing assets (NPAs) get substantially resolved (or provisioned). An economic downturn that is much more severe or prolonged than current forecasts or a likely significant increase in NPAs and credit losses can lead to a lower economic risk score.

Source: Mint February 24, 2021 10:07 UTC