Banks, NBFCs well-placed, says Moody’s

The report also noted the improved capitalization of financial institutions with healthy internal accruals and capital raising from buoyant debt and equity markets.
Representational purpose.
Representational purpose.

MUMBAI: Stating that the credit quality in the country’s financial system has improved in recent years with record-high profitability of over Rs 3 trillion in FY24, low delinquencies and domestic-oriented funding underpinning stable credit ratings, the system is well-placed to ride on the strong economic growth going ahead with strong credit growth.

“Banks and non-bank finance companies (NBFCs) are well placed to seize opportunities from the country’s strong economic prospects through higher lending in sectors such as infrastructure, energy transition, manufacturing, small businesses and retail.

The system wide credit quality has strengthened over the past three-four years which has seen in the record-high profitability, low delinquencies and stable domestic-oriented funding, underpinning their stable credit ratings,” Moody’s and its domestic subsidiary Icra Ratings said here Wednesday.

The report also noted the improved capitalization of financial institutions with healthy internal accruals and capital raising from buoyant debt and equity markets.

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