Mumbai, June 4 (IANS). Global rating agency Moody’s said that even amid global instability, Indian banks are capable of maintaining stable asset quality for the next 12 months.
According to Moody’s, domestic economic conditions remain helpful for development, helping Indian banks to manage their loan account effectively.
The rating agency said that in the next one year the non-performing loan (NPL) ratio of Indian banks may live between 2 to 3 percent.
As of December 2024, the bank’s NPL ratio was close to 2.5 percent, which is a strong index of asset quality stable in this sector.
The rating agency has released a positive outlook at a time when the RBI MPC is seeing the inclination of investors towards banking stocks due to the possibility of cutting interest rates.
Nifty Bank, the main index of banks, is doing business close to its all-time high. It was up 62 points or 0.11 percent to 55,662.45 in the afternoon trading. On Tuesday, it created a new all-time high of 56,161.40.
The meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has started today to review the interest rates. Economists and industry experts believe that the central bank may cut the repo rate by 25 basis points or 0.25 percent.
Due to positive situations for the interest rate deduction in the economy, market experts are assuming that this time the central bank can cut the repo rate by 25 basis points, which will reduce to 5.75 percent, which is currently 6 percent.
Bajaj Broking Research said, “The MPC has clearly taken an outsomative stance from the neutral, which reflects the intention of RBI to increase the liquidity and support development. The situation has strengthened by the retail inflation rate in April in April, which is the lowest level of inflation after July 2019.”
-IANS
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