New
Delhi: Moody''s rating agency in its banking system outlook on India, released
in Hong Kong today, has given stable outlook for India''s banking industry, and
has said that the rating is driven by relatively solid financial metrics amid
a benign operating environment conducive to credit growth. Moody''s
Investor Service said the stable rating outlook for Indian banks reflects the
country''s robust credit growth against the backdrop of a favourable economic milieu.
Stating that
implicit government support for systemically important banks has lifted the global
local currency (LLC) deposit ratings of most rated banks, it said. Moody''s
said there is scope for consolidation in India''s relatively crowded and fragmented
banking system, which is likely to increase as competition intensifies. It
further said the Indian economy continues its growth trajectory with GDP growing
at 9.4 per cent during the fiscal year ended March 2007.
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