India $32 Billion Bank Injection Welcomed by Moody’s, Fitch
- Fitch says $32 billion infusion will address negative outlook
- Pledged amount is a ‘significant credit positive’: Moody’s
India's State-Run Banks Soar
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India’s plan to inject an unprecedented 2.11 trillion rupees ($32 billion) into state-controlled banks will bolster their risk buffers and support the financial system, two major credit-rating companies said.
“The proposed infusion is a sizable jump over what had been pledged before as India is seeking to plug a large part of the core equity gap at the state-run banks,” said Jobin Jacob, a Mumbai-based associate director at Fitch Ratings Ltd. This addresses “weak core capitalization, one of the key drivers for our negative outlook on the South Asian nation’s banking sector.”