Outlook on Indian banks to stay negative over weak core capital: Fitch

Indian banks need to improve capital base against mounting bad debt and poor financial performance, Fitch said

Fitch Ratings on Monday said its outlook on Indian banking sector is likely to remain negative until banks, especially the public sector ones, address their weak core capital positions.

They need to improve capital base against mounting bad debt and poor financial performance, Fitch said.

The capital position of state banks is at risk. The core capital ratios of 11 of India's 21 state banks are below the 8 per cent minimum common equity Tier 1 (CET1) ratio that comes into place at the end of March 2019 (FYE19). 

The rating agency, in a statement, said banks' credit costs rose