Thursday, December 28, 2017

S&P places Indian banking sector under Group 5

Ratings agency Standard & Poor’s (S&P), in its Banking Industry Country Risk Assessment for India, has classified the nation’s banking sector under ‘Group 5’, along with countries such as Italy, Spain, Ireland, the UAE and South Africa. The S&P BICRA categorizes banking systems based on a nation’s economic health and industry risk criteria. The S&P BICRA rates banking systems globally, on a scale of ‘1’ to ‘10’, wherein group ‘1’ represents the lowest-risk banking systems and group ‘10’ the highest.

Noting that the “low-income” Indian economy and the government’s limited fiscal flexibility constrain the country’s economic resilience. in its India report. 

However, said the medium-term outlook for growth remains healthy, which provide sound development opportunities for Indian banks.

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