Global Rating agency Moody's on Wednesday said it was reviewing IndusInd Bank's risk management capabilities, and its leadership transition, with the private sector lender grappling with accounting lapses pertaining to its derivatives transactions. "The financial impact of the derivatives losses is quite manageable considering IndusInd Bank's strong capital.
Moody's Investors Service on Thursday said second wave of Covid infections has increased asset risks for Indian banks, but a severe deterioration is unlikely. It said that the second wave of coronavirus infections in India has exacerbated stress among individuals and small businesses that were hit the hardest by the initial outbreak. Still, a number of factors will prevent sharp increases in problem loans, and banks have sufficient buffers to absorb anticipated loan losses.
PSBs dominate India's banking system, meaning any failure could jeopardise financial stability, as such, we expect government support will remain forthcoming, said Moody's.
Moody's Investors Service, while silent on the sovereign rating on the higher-than-expected fiscal deficit numbers, expressed doubts over attaining the higher revenue targets and divestment realisation as assumed in the Budget. The Union Budget 2021-22 has pegged a fiscal deficit of 9.5 per cent for the current financial year as against the consensus 7 per cent, and 6.8 per cent for 2021-22 with a market borrowing of around Rs 12 lakh crore. It also assumes Rs 1.75 lakh crore to be scooped up from divestment.
'Petta response is so overwhelming and awesome.. Thank you Thalaivar fans!'
A large number of AIADMK cadre, led by former Minister D Jayakumar, had gathered in the area and resisted the entry of Congressmen resulting in a scuffle between the two groups.
The internal feud in the Dravida Munnetra Kazhagam intensified on Thursday with the high command ordering suspension of five loyalists of M K Alagiri, elder son of party chief M Karunanidhi, over recurring instances of "mischievous posters" in Madurai.
Moody's said the asset quality of the banks will remain under pressure.
State-owned banks account for more than two-thirds of the sector's assets and about 85 percent of bad debts
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