Public sector banks lack good capital: Moody’s

NEW DELHI: Public sector lenders in India lack good capital buffer and profitability, unlike their peers in most countries of the Asia-Pacific, Moody’s Investors Service said on Monday. “Banks in the Asia-Pacific except for banks in Vietnam and public sector banks in India show good capital buffer and profitability, providing a good line of defence against rising problem loans,” it said. Such buffers include generally low-problem loan ratios and a problem loan coverage of above 80% for more than half of Asia-Pacific banking systems, it added.

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