Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
Powered by cricketnext logo
News18 » Business
1-min read

Indian Banks’ Ratings Under Pressure Due to Bad loans, Says Fitch Report

In its latest report on bank recapitalisation, Fitch said that the government will have to infuse more than double the capital it is doing so at present into state-run banks if it is to raise credit growth and clean up Non Performing Liabilities.

Shereen Bhan | CNBC TV18

Updated:September 12, 2017, 5:37 PM IST
facebookTwitter Pocket whatsapp
Indian Banks’ Ratings Under Pressure Due to Bad loans, Says Fitch Report
Representative image

New Delhi: Fitch Ratings has said that Indian banks' viability ratings will come under pressure if their capital problem is not addressed.

In its latest report on bank recapitalisation, the global ratings agency said that the government will have to infuse more than double the capital it is doing so at present into state-run banks if it is to raise credit growth and clean up Non-Performing Liabilities.

This comes just a week after RBI Deputy Governor Viral Acharya made a fervent pitch for decisive and adequate bank recapitalisation to address the bad loans problem.

Fitch Ratings had earlier estimated a $ 90 billion capital requirement for Indian banks. The ratings agency also estimated that Indian banks will need $65 billion to meet Basel-III capital norms by March 2019.

After March 2019, Indian banks will need to maintain a minimum Capital Adequacy Ratio (CAR) of nine percent, over and above their capital conservation buffer which is 2.5 percent. This translates into a CAR of 11.5 percent, which is higher than the 9.62 percent they are currently required to maintain.

The report also said that stressed assets in the system have risen to 12% as of Financial Year 2017.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Ashish Yechury
Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
Yes Bank 56.00 -9.82
SBI 320.00 -4.82
ICICI Bank 524.80 -0.62
Indiabulls Hsg 272.45 -4.44
Reliance 1,554.90 0.26
Company Price Change %Gain
Yes Bank 56.00 -9.82
Indiabulls Hsg 272.40 -4.39
SBI 319.80 -4.89
Reliance 1,554.95 0.30
RBL Bank 338.80 -7.28
Top Gainers
Company Price Change %Gain
Bharti Infratel 259.70 5.55
Kotak Mahindra 1,674.30 1.52
JSW Steel 254.10 1.05
Tata Steel 403.25 0.86
Dr Reddys Labs 2,890.80 0.67
Company Price Change %Gain
Kotak Mahindra 1,674.30 1.48
Tata Steel 402.95 0.83
Reliance 1,554.95 0.30
Asian Paints 1,717.80 0.17
Infosys 715.15 0.07
Top Losers
Company Price Change %Gain
Yes Bank 56.00 -9.82
SBI 320.00 -4.82
Zee Entertain 287.70 -4.12
GAIL 117.15 -3.34
IndusInd Bank 1,465.85 -2.91
Company Price Change %Gain
Yes Bank 56.00 -9.82
SBI 319.80 -4.89
IndusInd Bank 1,463.75 -3.05
Tata Motors 161.50 -2.77
M&M 510.30 -2.73

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results