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Banks to witness bad-loans pressure in FY'16: Moody's
July 28, 2015
Indian banks will continue to reel under the impact of bad
loans in the current financial year, although new non-performing assets may
decline, says a Moody's report.
"In our opinion, the Indian banks are unlikely to
reduce their problem loan ratios in FY2016 but the new non-performing loans will
probably decline," Moody's Investors Service said, based on findings of a
poll.
State-owned banks have little capacity to improve their generally
weak capital buffers through retained earnings as capital infusion, including
from government, is likely to remain scarce, it said.
Bulk of the respondents, according to a poll result, are not
expecting any significant improvement in the capital levels of the state-owned
banks over the next two years.
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