Risk of a sharp fall in Indian banks’ asset quality has receded: Moody's The banking system is shifting faster than ever before to an online-centric mode, making access to local bank branches less consequential and the ability to switch banks far easierPremium 1 min read Share Via Read Full Story The Indian government's support measures for bank borrowers have softened growth in non-performing loans (NPLs), averting the risk of a sharp deterioration in asset quality, according to Moody's Investors Service in a new report. "Ample domestic liquidity, loose monetary policy, moratoriums on loan repayments and government-guaranteed loans to small businesses have supported Indian banks' asset quality. As a result, restructured loans have not increased as much as we expected at the onset of the pandemic," says Alka Anbarasu, a Moody's Vice President and Senior Credit Officer.