S&P Market Intelligence expects Indian banks' dividend pay-outs to decline 4.2% in FY26 as margins and profits weaken, with HDFC Bank and Bank of Baroda set to cut dividends
S&P Global expects Indian banks' margins to recover in H2 FY26 after RBI's 100 bps rate cut hit Q1 earnings, with SBI, ICICI posting profit growth and asset quality seen healthy
India aims to narrow its fiscal deficit to 4.50% of gross domestic product by the end of 2025/26, from an expected 5.8% in 2023/24
Agency's projection is lower than the Reserve Bank of India's and the government's growth estimate of 7%
MUMBAI (Reuters) - Funding conditions in India are likely to play a crucial role in constraining loan growth for many banks in the country, and credit expansion could moderate by 200 basis points in the next fiscal year, S&P Global Ratings said in note on Thursday.
The bank's strong management and governance structure should help in the planned merger of mortgage lender Housing Development Finance Corporation Ltd (HDFC) with itself
The credit cost, amounts set aside for bad and stressed loans, for the Indian banking system will rise to 2.8 per cent in 2020-21, from the previous estimate of 1.5 per cent, S&P said in a statement.
Banks categorised an increasing proportion of weak loans as NPLs due to more stringent requirements by the Reserve Bank and government