Outlook for Indian banking system stable: Moody's

Global rating agency Moody’s on Thursday said its outlook for the Indian banking system is stable on improved prospects for asset quality.

The progress in tackling the system’s legacy asset issues (stressed assets) offsets the significant capital shortfalls some banks continue to face.

"The outlook for the system is also in line with the stable outlooks for 10 of the 15 banks we rate in this system. It reflects a stable operating environment and improved prospects for asset quality, among other factors," said Srikanth Vadlamani, a Moody's Vice President and Senior Credit Officer.

The indicators such as net new non-performing