Banking sector to struggle for two more years amid NPA woes, says Fitch

The performance of India’s banking sector is likely to be below average for the next two years because it is struggling with poor asset quality and weak core capitalisation, said rating agency Fitch.
 
Fitch lowered the operating environment assessment to “BB+” from “BBB”, based on the review of performance in past three years. The assessment factors in the review of the regulatory framework and the outlook in the near to medium term, it said in a statement.
 
Meanwhile, Fitch affirmed the “BBB-” Long-Term Issuer Default Ratings (IDRs) of the following six Indian banks: State Bank of India, Bank