Bank shares tank after Moody's changes outlook on Indian banks to negative; RBL, Kotak, IndusInd top losers
Bank shares on Friday dropped up to 15 percent after Moody's Investors Service changed the outlook for the Indian banking system to negative from stable
New Delhi: Bank shares on Friday dropped up to 15 percent after Moody's Investors Service changed the outlook for the Indian banking system to negative from stable.
Shares of RBL Bank tumbled 14.99 percent, Kotak Mahindra Bank tanked 7.77 percent, IndusInd Bank fell 7.33 percent, ICICI Bank 6.56 percent, SBI 4.34 percent.
Also, City Union Bank slumped 4.21 percent, Axis Bank dipped 3.86 percent and Federal Bank 3.26 percent.
Representational image. Reuters.
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The BSE Bank index was quoting lower by 3.74 percent at 20,098.85.
Moody's Investors Service on Thursday changed the outlook for the Indian banking system to negative from stable, as it expects a deterioration in banks' asset quality due to disruption in economic activity from the coronavirus outbreak.
It said banks' asset quality will deteriorate across the corporate, small and medium enterprises and retail segments, leading to pressure on profitability and capital.
"We have changed the outlook for the Indian banking system to negative from stable. Disruptions to economic activity from the coronavirus outbreak will exacerbate a slowdown in India's economic growth," Moody's said.
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