Moody's On Indian Banks

Credit rating agency Moody's Investors Service on Monday said banks in India, Saudi Arabia and South Africa would post larger increases in margins in FY23

Moody's affirmed the issuer rating of Reliance Industries but revised the outlook to negative from stable

Market players said Moody's outlook underscored some of the marco concerns

Borrowing costs from overseas markets may not see substantial jump

The rating outlooks for Bank of India, Canara Bank, Syndicate Bank and Union Bank of India are maintained at stable.

Fall in share price will challenge the bank's ability to raise sufficient capital to maintain the rating at its previous level, Moody's said

Liquidity constraints faced by some non-bank financial institutions (NBFIs) will tighten credit supply and slow growth to a little over 7 per cent for the current fiscal, Moody's Investors Service said Thursday. "...The liquidity constraints faced by some NBFIs in India, after the default of Infrastructure Leasing & Financial Services Ltd (IL&FS) in September 2018, will likely tighten overall credit supply in the country," Moody's said in a statement. Besides, any further distress in the NBFI sector will pose significant downside risks to India's growth outlook, it said. Moody's Managing Director and Chief Credit Officer (Asia Pacific) Michael Taylor said India's GDP growth will slow to just above 7 per cent for fiscal 2019 and 2020. Indian economy grew at 7.1 per cent in the July-September quarter, lower than 8.2 per cent in April-June. The rating agency said NBFIs are an important provider of credit to the economy and, in the fiscal ended March 31, 2018, accounted for nearly

Moody's polled 210 market participants on some of the industry's most pressing credit issues

For Axis Bank and ICICI Bank, the agency said it expects the pace of bad loan formation to decline