India Among Countries With Shakiest Banks

India is among the countries with the worlds shakiest banks, according to well-known rating agency Moodys Investor Service.

The investor service rates banks in grades A, B, C, D and E/E-plus categories on the basis of services they provide. Those rated A are the best, while those in the E category are in need of rescue.

Moodys has rated six Indian banks and put only one in the lowest E/E-plus category. The bank has not been identified. The largest number of banks with an average E or E-plus are in Mexico, Pakistan, Romania and Tunisia.

The next economic crisis may stem from the woes of the worlds banks and experts cite a long list of shaky institutions, mostly in poorer nations, a report in the Wall Street Journal said. The issue was expected to figure in the forthcoming Denver summit of the G-7 nations, the report said.

Regarding India, the journal quoted Harvard economist Jeffrey Sachs saying that the countrys state-run financial system was a time bomb.

State banks cant take care of peoples money, he had said in New Delhi recently. India could double her disappointing economic growth rate if it privatised banks and allowed private companies to sell insurance, Sachs was reported to have said.