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Moody’s Upgrade Could Help Small PSBs
November 23, 2017
Moody’s recent upgrading of India’s rating may give a boost to the small state-owned banks which are dealing with a large number of stressed accounts.
AK Capital executive director Ashish Agarwal said that small to mid-size public sector banks(PSBs) have greatly benefitted from lower borrowing costs. The government’s recent decision to go the recapitalization route played a major role in the same as the borrowing costs dropped by at least 75 bps soon after the announcement.
Now that Moody’s has upgraded the sovereign rating, investor confidence in the PSBs is likely to grow further.
