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% ...
Issue of PSLCs is good for banks: Moody's
The Dollar Buiness Bureau The release of Reserve Bank’s guidelines for priority sector lending certificates (PSLCs) is credit positive for banks that are not having expertise in making priority sector loans, said global rating agency Moody’s. “This allows them to focus on their strengths and purchase credits from banks with expertise in making such loans, instead of diverting their own resources toward meeting priority sector lending targets,” it said. While releasing the instructions on trading in PSLCs, S S Mundra, Deputy Governor of RBI also launched a platform to enable trading in the certificates through its Core Banking Solution portal (e-Kuber). All Scheduled Commercial Banks including Regional Rural Banks, Urban Co-operative Banks, Small Finance Banks and Local Area Banks are eligible to ...
Effect of China slowdown on India negligible: Moodys
The Dollar Business Bureau The Chinese slowdown will have a negligible impact on India, credit rating agency Moody’s said in its recent report, citing reasons such as the country’s strong domestic market, accelerating economic growth and diversified source of funding. “By comparison (with other countries such as China, Japan and Australia), delinquencies in India will improve thanks to the country's accelerating economic growth,” Moody’s said in its Credit Outlook Report on Monday. In the past, too, the global agency had underlined that the Indian economy will be less hit by the Chinese economic equation, but had insisted that the Indian government should continue to focus on mitigating its impact by taking pro-industry initiatives, improving agriculture production, encouraging manufacturing and strengthening its ...
