Indian banks 2nd only to Chinese counterparts in exposure to risks: Moody's

This is due to large loans are given to businesses with poor repayment capacity, it said

Indian banks' exposure to risks has risen and is now second only to those in China in the Asia-Pacific (APAC) region due to large loans given to businesses having poor repayment capacity, ratings agency Moody's Investors Services has reportedly said. 

According to a LiveMint report published on Thursday, the Moody's report said that while India's overall credit penetration remained low, its banks' exposure to corporate borrowers that have poor debt servicing capacity has increased the risks of defaults. Further, the financial daily said while citing the agency's report, while in India, private sector credit as a percentage of the gross