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BRIEF-Fitch says Indian state banks to benefit from large recapitalisation
October 26, 2017 / 4:16 AM / a month ago

BRIEF-Fitch says Indian state banks to benefit from large recapitalisation

Oct 26 (Reuters) - Fitch -

* Indian state banks to benefit from large recapitalisation

* Indian banks’ liquidity ratios are healthy, having been given a boost by a surge in deposits after demonetisation

* Latest planned injections by Indian government will go a long way in plugging total capital gap​

* Lending growth is still likely to remain weak, at least in short term, as Indian banks will prioritise asset resolution & provisioning over expansion​

* Indian government’s announcement of large recapitalisation plans for state banks is significant change from drip-feed approach pursued over last few years

* Indian government’s large recapitalisation plans for state banks should help to address capital shortages

* Recapitalisation plans could make target to cut the central government fiscal deficit more difficult to achieve Source text for Eikon: (Bengaluru Newsroom)

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