State-run banks’ credit profiles at risk on heavy losses: Fitch

MUMBAI: The credit profiles of public sector banks (PSBs) are under pressure following huge losses in the past two consecutive quarters, which have weakened their

MUMBAI: The credit profiles of public sector banks (PSBs) are under pressure following huge losses in the past two consecutive quarters, which have weakened their core capital adequacy, ratings agency Fitch said. Following the asset quality review by the RBI, the 45 listed banks have identified Rs 5.81 lakh crore worth of loans as non-performing assets (NPAs) as of March 31, 2016. “PSBs’ inability to strengthen their capital in a timely manner could have a potentially negative impact on their ability to achieve balance sheet stability and pursue credit growth,” Fitch said.

HT Image