Indian banking to be among the last to recover in Covid-19 crisis: S&P

NBFC sector will take a long time to recover too, says India Ratings.

The banking systems in emerging markets such as India, Mexico, and South Africa will be back to the pre-Covid-19 levels only after 2023, a recovery that will be slower than their peers’ in many other geographies, according to rating agency Standard and Poor’s (S&P).
 
Considered a “late-exiter”, the Indian banking sector had significant asset-quality issues even before the pandemic, while asset quality was showing an improvement in many other jurisdictions, it said in a report titled “Global Banking: Recovery Will Stretch To 2023 And Beyond” released on Thursday.
 
Emerging-market banks will likely see a sharp increase in credit