S&P Global Ratings on Monday said India's banking system's low profitability and weak asset quality present some difficulties in significantly boosting digitalisation for several state-owned and smaller private-sector banks.
S&P affirms Indian Bank s BBB-minus/A-3 ratings with negative outlook ANI | Updated: Dec 24, 2020 12:01 IST
Singapore, December 24 (ANI): S&P Global Ratings has affirmed BBB-minus long-term and A-3 short-term issuer credit ratings on Indian Bank, and said the outlook on long-term rating is negative. We affirmed the ratings because we expect Indian Bank to be able to absorb a moderate deterioration in its asset quality over the next 12 months and benefit from faster-than-expected economic recovery in India, said S&P. Indian Bank s performance following its merger with Allahabad Bank has been better than we expected.
However, non-performing loans (NPLs) in India s banking sector could rise to 10 to 11 per cent by end-March 2022 (fiscal 2022) from about 8 per cent as of June 30, 2020. An additional 3 to 8 per cent of loans could get restructured.