Moody’s poll: Indian banks most at risk among Southeast Asia peers

Indian banks are most at risk in South and South-East Asia.

IANS July 27, 2017 14:30:45 IST
Moody’s poll: Indian banks most at risk among Southeast Asia peers

NEW DELHI: Indian banks are most at risk in South and South-East (S-E) Asia, and being under-capitalised, they lack sufficient loan provisioning, says a Moody's poll.

Moodys poll Indian banks most at risk among Southeast Asia peers

Representational image. Reuters

It said the government has appeared reluctant to increase capital injection into PSU banks despite the limited ability of these lenders to access equity markets for the much-needed capital.

Earlier this month, Moody's polled 210 market participants on some of the industry's most pressing credit issues.

"Indian banks are most at risk in South and South-East Asia. We agree that many banks in India remain undercapitalised and continue to lack sufficient loan-loss provisions. Moreover, the government has appeared reluctant to increase capital injections into the PSU banks, despite the limited ability of these to access equity markets for the much-needed capital," the Moody's poll said.

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