The government's Rs 2.1 lakh crore recapitalisation plan is perceived to be credit positive by global ratings firm Moody 's. But it has refrained from commenting on its rating action or a possibility of an upgrade in the sector's outlook. "The quantum of the plan is large enough to comprehensively address these banks' weak capitalization levels. we expect all rated public sector banks to get enough capital to satisfy their Basel 3 capital requirements as well as adequately address their asset quality challenges. Thus, while the extent of improvement may vary, we expect the capitalization profiles of all rated public sector banks to improve" Moody's said.

Source: Economic Times October 25, 2017 06:33 UTC