MUMBAI : Moody's Investors Service on Friday upgraded long-term currency deposit ratings for three Indian state-run lenders on improving credit metrics, better macro economic health and a bet on government support for financial institutions.
Indian banks have been able to weather the impact of the pandemic to report an improvement in their profitability and asset quality in recent quarters. The ratings upgrade also reflected banks' improved asset quality and profitability, Moody's said, adding that it expects this increase in profitability to be sustainable over the next 12-18 months.Indian banks have been shoring up their deposit base and raising capital to meet the growing credit demand.
Corporates' financial health has also improved following a decade of deleveraging, while stress among non-bank financial institutions has abated, it said.