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Indian Banks to may need capital as bad loans set to rise

May 28, 2020

Indian Banks to may need capital as bad loans set to rise

Indian banks may need to raise $20-50 billion capital in the following two years as bad loans and credit costs ascend because of the Coronavirus instigated log jam in the economy, businesses, and rating agencies believe.

The issue is far more terrible for public sector banks (PSBs) with the legislature not planning any capital mixture this financial and indicating that they ought to depend on advertising for capital. Investigators state expecting PSBs to raise market funds is a tall ask considering they are exchanging at book value.

Saswata Guha, Director, Financial Institutions, Fitch Ratings said, “We had assessed a $50 billion capital requirement in a pre-Corona virus scenario. With development set to agreement and resource quality worry to expand, we anticipate that this figure should remain elevated”.

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