India Banks Stable

December 17th, 2010
in News, Banking

iStockAnalyst:  (Source: Info-Prod Research (Middle East))trackingThe outlook for India's banking system remains stable, reflecting favourable operating conditions, solid capital levels that remain sound in stressed scenario analysis, a strong retail deposit funding base, and sound liquidity, says Moody's Investors Service in its new Banking System Outlook on India.

Follow up:

 The banking system outlook expresses Moody's expectations for the fundamental credit conditions in this banking system over the next 12-18 months. The report notes that the operating environment for Indian banks is likely to remain conducive to high credit growth, as GDP growth trends back up to its pre-debt-crisis level of close to 9% per year, and an increasing proportion of the young population is moving into the "bankable" sector of the population. "These positive factors are balanced by the still-high levels of inflation in India, the need to manage the accelerating pace of loan growth and recent asset-quality challenges (particularly in consumer lending).

We also see an increased risk of probable asset bubbles forming and posing a medium- to longer-term challenge for the banking system," explains Nondas Nicolaides, Moody's vice president, senior analyst, and author of the banking system outlook. "We see risks of an overheating economy given our expectation of continued strong economic and credit growth, while real estate prices in metropolitan areas and equity markets have already recaptured their pre-crisis peaks.  Read more.....

Hat tip to Sanjeev Kulkarni

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved