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Indian state-owned banks' credit profile at risk without more capital: Fitch

Lenders' provisioning has been weak and significant new capital is necessary to maintain credit profiles, the ratings agency says

BS Reporter  |  Mumbai 

If there isn’t meaningful action to restore their capital adequacy, the standalone credit profile of many Indian public sector banks (PSBs) could come under pressure, says Fitch, the global ratings agency. Last week, several large PSBs reported significant quarterly losses. These underscore long-standing balance sheet and capital risks, legacy issues pertaining to poor asset quality and weak provisioning, Fitch said on Friday. Fitch’s estimate of the system’s need for capital is $140 billion or Rs 9.6 lakh crore. With some of the losses, this might need ...

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First Published: Sat, February 20 2016. 00:23 IST
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