Indias growth to face domestic challenges in next two years
The Dollar Business Bureau Economic growth rate of India in the next two years is likely to face challenges by dreary global demand and major leverage in certain corporate sectors, said Moody’s, a credit rating agency. Presently, Moody’s with ‘Baa3’ rating has a positive outlook for the country. However, the high leverage of corporates and credit demand will impact the growth in negative ways. Meanwhile, the impaired assets in banking system may negatively impact on credit supply, said Moody’s senior vice-president and manager, Marie Dion. In FY16, despite domestic hurdles, India’s GDP climbed to 7.6% from 7.2% logged in FY15. On the back of good monsoons with a push on consumption due to the recent 7th Pay Commission, the economy is expected to grow by 8% ...
11 PSBs need Rs.1.2 lakh cr infusion by 2020: Moodys
The Dollar Business Bureau The government needs to infuse Rs.1.2 lakh crore into 11 public sector banks (PSBs) by 2020 to strengthen their books, said credit rating agency Moody's. “The State Bank of India (SBI) and 10 other PSBs (including Bank of Baroda and Bank of India) will have to be infused with Rs.1.2 lakh crore, much higher than the government has planned to inject, to boost their balance sheets,” said Moody’s Investors Service on Friday. The government has announced to infuse Rs.70,000 crore as capital for 22 PSBs till March 2019. Out of this, an amount of Rs.25,000 crore has already been infused and the government is planning to inject an equal amount during this fiscal. “In the wake of their results for ...
Moodys predicts overall growth rate of 7.3% for 2015, the lowest
The Dollar Business Bureau “India’s first quarter growth rate is tracking around 7.3% YoY, a slowdown from prior quarters, but we expect this softness will prove temporary, with improving domestic demand to help India’s gross domestic product (GDP) grow 7.3% for all of 2015,” says a Moody’s Analytics study. India’s economy is on a cyclical upswing. Forward-looking indicators suggest domestic demand is gathering momentum. Low inflation has enabled the Reserve Bank of India to cut interest rates by 50 basis points in early 2015, easing pressure on the private sector. Lower rates as well as the government’s infrastructure and disinvestment programs should provide a boost to domestic-oriented industries, the study said and added, the government has begun selling public assets ...
