New Delhi, Sept 01: Government today welcomed Standard and Poor's upgrading the outlook of Indian banks to 'stable from negative', but felt that it should have been higher at 'positive' considering strong economic fundamentals including buoyant capital markets and low indebtedness. "It is the opportune time for S&P to upgrade the rating since sensex is at 30-months' high and that RBI has issued the licence for the first asset reconstruction company to deal with NPAs. I feel that they (S&P) should have made it positive," chief economic advisor Ashok Lahiri told reporters here.
The rating comes ahead of a S&P team's visit to India this month to interact with regulators and market players to have first hand knowledge on the Indian economy.
Lahiri said the Indian banking system had shown resilience.
On the S&P's observation that country risks were high as compared to other developed banking markets, he said the comments would be taken in right spirit and "we are fully aware of our responsibilities".
U K Sinha, joint secretary (capital markets) said the government was engaged in discussions with the rating agency.

Bureau Report