Credit risks to remain high in India's financial sector in 2020, says S&P

India will go through a tug of war on the economy, resolution of bad loans, and health of non-banking financing companies (NBFC), S&P said

The credit risks will remain high in the country’s financial sector in 2020, despite the recognition of legacy stressed assets and capital infusion by the government in public sector banks, Standard and Poor's (S&P) said on Tuesday.

 
India will go through a tug of war on the economy, resolution of bad loans, and health of non-banking financing companies (NBFC). Private-sector banks and top-tier public sector banks with better franchises, profitability, and capitalisation are likely to increase their market share, S&P said in reports on banks in 15 emerging markets.
 
Reduction in stressed assets is contingent upon the insolvency and