Banks in India to See Capital Decline Over 2 Years Without Fresh Infusion: Moody's
News 18New Delhi: Moody's Investors Service on Monday said the bank capital will moderately fall in emerging Asia over the next two years, with India seeing larger capital decline without further infusion. In a report, Moody's said the uncertain trajectory of asset quality is one of the biggest threats for emerging market banks, as operating conditions remain challenging amid the current COVID pandemic. Capital will moderately fall in emerging Asia over the next two years, and banks in India and Sri Lanka will post larger capital declines without public or private injections," Moody's said. "Profit growth will be modest because of low-interest rate and subdued lending, but lower loan volumes should aid capital," Moody's Managing Director Celina Vansetti-Hutchins said in the 'Emerging Markets Financial Institutions Outlook' report.. Read all the Latest News, Breaking News and Coronavirus News here