Days after downgrading India's sovereign ratings, global credit ratings agency
Days after downgrading India’s sovereign ratings, global credit ratings agency Moody’s Investors Service said on Wednesday that the quality of retail and small business loans will also deteriorate.
Elaborating on the key drivers behind India’s sovereign downgrade, it said that the risks to the financial system are rising, news agency IANS reported.
Some sectors were already under strain before the coronavirus outbreak. For NBFIs, both assets and liabilities will come under a strain in the near term, this is about 10-15 per cent of bank loans.
Private power sector exposure is about 8-10 per cent of bank loans. In the auto value chain, the most exposed banks are the private sector banks.
It said that now the quality of retail and small and medium enterprise (SME) loans will also deteriorate, which account of 44 per cent of the total loans.
Moody’s Investors Service has said that policymaking institutions face increasing…