New Delhi, Sept 01: Global rating agency Standard & Poor's today upgraded the outlook for the Indian banking system to 'stable' from `negative,' in the face of structural reforms and improved health of the banks. The rating agency, however, maintained that the industry risks in India still remained high when compared to other developed banking markets, an S&P release from Singapore said.
"Key watershed structural reforms in India so far have improved the health of the banking sector's asset quality, profitability, and capital adequacy," S&P credit analyst Adrian Chee said, adding, "the industry still faces a number of key challenges."
"One is the overall capitalization level of the banking industry, which could face some pressure going forward from higher demand for new credit and additional provisioning needs as it strives towards international standards of net NPA ratios," he added.

Bureau Report