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Steady outlook on banking sector

Infrastructure Finance
February 1, 2014February 1, 2014
Steady outlook on banking sector
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Banks in the country would largely remain resilient to the cyclical downturn on improvement in loan loss reserves and common equity injections in 2014, says an India Ratings and Research report. The report underlines a stable outlook for the sector in 2014. However, banks continue to face credit quality pressures from loan concentration, borrowers´ over-leverage and the prevailing economic slowdown. The portfolio of stressed assets is expected to grow from about 10.25 per cent at the end of September 2013 to 14 per cent by March 2015.

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