Upgrades their outlook to stable from negative tag
Upgrades their outlook to stable from negative tag
The country’s banking system was upgraded to ‘stable’ from ‘negative’ after four years by Moody’s Investors Service on Monday on the expectation of reduction in pace of accretion of bad loans over the next few years following improvement in the operating environment. Moody’s VP (senior credit officer) Srikanth Vadlamani said “We do think the stock of NPLs will keep going up, we are not saying that has bottomed out, but the pace of addition to NPLs will come down meaningfully over the next two years.” He further said Moody’s rates 15 banks in the country that together account for around 70 per cent of the system assets. While 11 of them are PSBs, four are from private sector while speaking to reporters. He expects the pace of bad loans to be reduced as the operating environment is getting better.
