- Andhra Pradesh: Telugu film producers council says Telugu film industry has no links with IPL spot-fixing scandal
- Assam: Drivers block NH 61 near Assam-Nagaland border protesting recent attack on truck drivers by Naga militants
- Bihar: 3 members of a marriage party killed, 15 injured when their bus overturned in Goh area in Aurangabad today, say police
- Chennai: CM urges PM to take urgent steps to get back Katchatheevu islet and the surrounding areas from Sri Lanka
- Delhi: Delhi HC to hear tomorrow a plea seeking a stay on all remaining IPL matches in the wake of spot-fixing scandal
- Gujarat: CM Modi gives various suggestions for the upcoming 2014 polls at the BJP parliamentary board meeting in Delhi today
- Haryana: NCPCR seeks explanation from government on refusal of 6 panchayats to send girls to school due to harassment by boys
- Himachal Pradesh: Police check posts at Kothi, Marhi, Rohtang Pass to regulate traffic will become operational this week, say officials
- Jammu and Kashmir: Normal life hit in JK due to separatists shutdown to commemorate death anniversary of their leaders MM Farooq, AG Lone
- Karnataka: Four additional coaches to be attached to 0836 Yeshwantpur-Hatia weekly express from May 25 to clear extra rush
- Kerala: HC defers hearing on anticipatory bail plea of Kalabhavan Mani in connection with assault on forest officials on duty
- Kolkata: Met dept predicts partly cloudy sky in Kolkata and other places across the state; maximum temperature to stay at 35C
- Madhya Pradesh: Government declares 44 tehsils in 21 districts of the state as drought-hit areas, say officials
- Maharashtra: Met dept predicts partly cloudy sky in many parts of the state including Mumbai in next 12 hrs; maximum temp to be 34C
- Mumbai: Met dept predicts partly cloudy sky in many parts of the state including Mumbai in next 12 hrs; maximum temp to be 34C
- Northeast: Normal life hit in Agartala in Tripura due to strike called by Congress against murder of 3 newspaper employees
- Odisha: Congress organises special programmes in the state to pay tribute to Rajiv Gandhi on his 22th death anniversary today
- Punjab: Counting of votes for zila parishad, block samiti polls in Punjab underway; SAD leading in SAS Nagar, Sangrur, Patiala
- Rajasthan: RPSC to hold Rajasthan Administrative and Allied Services main exam from May 30 to June 17, say officials
- Tamil Nadu: CM urges PM to take urgent steps to get back Katchatheevu islet and the surrounding areas from Sri Lanka
- UP East: A new sugar mill will soon come up in Shahjahanpur, says chief minister Akhilesh Yadav
- UP West: A new sugar mill will soon come up in Shahjahanpur, says chief minister Akhilesh Yadav
- West Bengal: Met dept predicts partly cloudy sky in Kolkata and other places across the state; maximum temperature to stay at 35C
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Asset quality of Indian banks to weaken: S&P
 IANS New Delhi, July 25: The quality of assets and earnings of banks in the emerging economies, especially India, is likely to weaken over the next 12-24 months owing to slower growth, global ratings agency Standard & Poor's said Wednesday. "We believe the asset quality of Indian banks is likely to deteriorate due to the moderation in economic activity, high inflation, high interest rates, and rupee depreciation," said Standard & Poor's credit analyst Geeta Chugh. "Small and midsize companies are particularly vulnerable. Stress is also mounting on some highly leveraged large companies," she said. The report said the slowdown in growth also in China and Brazil could weaken the asset quality and earnings of banks in these countries. The situation in Russia, however, is somewhat different. Russia's banking industry, it said, is likely to continue its recovery from a severe recession in 2008-09 for at least the next two years. The report did not cover South Africa, which is now a part of the grouping called BRICS. In the report, "Government Support Should Enable BRIC Banks To Ward Off Economic Headwinds," the ratings agency said that the credit profiles the banks in these developing countries are unlikely to be affected because of their strong ties with the governments. "State ownership and control of a significant part of the banking industry in BRIC countries is a critical rating factor," said Chugh. "Such a link is integral to the economic model of these countries. We expect governments to step in to avoid any abrupt and unexpected deterioration in local banks' financial condition," Chugh said in a statement. "Government ownership and economic development policies link the credit ratings on the largest BRIC banks to government creditworthiness," she added. According to the report, whereas asset quality in Brazil, China, and India is weakening, problem assets in Russia are declining from the peak of the recession despite credit risk in Russia remaining very high. "Earnings of banks in China and Brazil could decline in 2012, but remain satisfactory. Returns in India and Russia in 2012 are likely to be at levels similar to 2011," it said. Standard & Poor's said its rating outlook on the large banks in Brazil, Russia, and China is stable, reflecting its expectation that these countries will maintain their good economic resilience to a global slowdown and that their banking sectors will experience only a moderate deterioration in asset quality and earnings. The negative outlook on the banks in India (BBB-/Negative/A-3) reflects the negative outlook on the sovereign rating. © 2013 IANS India Private Limited. All Rights Reserved. For news, views and gossips, follow @IANSLIVE at Twitter. Find us on Facebook too! Update: 25-July-2012 Comments: [0] Add your comment |
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