 "Moody's")
Rating agency Moody's has maintained 'stable' outlook for India's banking system. The operating conditions for banks will be stable, supported by improving consumer and business confidence, as well as improving domestic demand, Moody's said in a statement.
Still, the banking sector's financial fundamentals will improve. Declines in loan-loss provisions and increases in net interest margins will boost banks' profitability.
Moody’s said that capitalisation, funding, and liquidity will be stable and support loan growth. However, the global economic fallout from the Russia-Ukraine military conflict will create some risks, pushing up inflation and interest rates, and creating supply constraints.
The Indian economy
