 "banks")
The pace at which the asset quality and profitability of Indian banks have improved has exceeded expectations, while capital buffers are broadly in line with Fitch Ratings' projections. There is a further upside in performance and this could persist for longer than expected, according to the agency.
The sector's impaired-loan ratio declined to 4.5 per cent in the first 9 months of FY23 (9MFY23), from 6.0 per cent at FY22. This was nearly 60 basis points below Fitch's FY23 estimate.
Increased write-offs have been a key factor, but higher loan growth, supported by lower slippages and improved recoveries, have also
