Global credit rating agency Moody’s has maintained a stable outlook for India’s banking system citing strong fundamentals of the local economy which will support credit growth and prevent deterioration in asset quality.
The rating agency has however flagged loans to small and medium-size enterprises (SMEs) which it said could pose risks to banks’ asset quality because this segment is the most vulnerable to rises in interest rates.
Moody’s has maintained a stable outlook for India’s banking system citing strong fundamentals of the local economy which will support credit growth and prevent deterioration in asset quality. The rating agency has however flagged loans to small and medium-size enterprises (SMEs) which it said could pose risks to banks’ asset quality because this segment is the most vulnerable to rises in interest rates.
