Moody’s concerned about banks’ health

Global rating agency Moody’s said on Tuesday financial strength ratings of Indian banks continued to be constrained by “difficult” operating environment leading to poor asset quality and scant profitability.

“The current levels tend to be concentrated in the D Category, underpinning Moody’s view of the banks’ financial health and their fragility, given the still poor asset quality and scant profitability that is highly dependent on interest income,” the credit rating agency said in a statement from Limassol, Italy.