Indian banks need to improve risk management, governance practices: S&P

Axis Bank's risk management is seen as weaker than that of private sector peer HDFC Bank Ltd

Global credit agency Standard and Poor's (S&P) said the Indian banks need to improve risk management and governance practices in the light of troubles faced by the two private lenders ICICI Bank and Axis Bank.

"As a number of banks in India confront serious governance and risk issues, the 'tone at the top' is crucial. Leadership groups in Indian banks need to ensure that they enhance the risk culture, reputation, and financial strength of banks," said S&P Global Ratings credit analyst Michael Puli.

Rating agency assesses management's ability and expertise to grow the business sustainably. The flaw in governance and