Indian banks may face asset quality, earning pressure for 2 years: Fitch

Indian banks are likely to require at least $15 billion in fresh capital to meet a 10 per cent weighted-average common equity tier-1 ratio under a moderate stress scenario

Indian banks may continue to face heightened asset quality and earning pressure for at least two years, as disruption to business activity and supply chains and shrinking personal incomes damage banks' balance sheets, according to a report by Fitch Ratings.

The reported performance of Indian banks for the financial year ended March 2020 does not adequately reflect the incipient stress caused by the pandemic, the rating agency said in the report titled 'Indian banks vulnerable to pandemic related stress'.

"Bank balance sheets are yet to feel the impact of India's strict lockdown measures that were implemented by the government from