Aided by strong demand recovery, credit ratio rebounds to 1.33 in H2FY21, from 0.54 in H1FY21. GDP could grow at 11% in FY22, but the resurgence in Covid-19 cases is a key downside risk, says CRISIL.
While Indian banks' improved financial metrics do not fully reflect the impact of the Covid-19 pandemic, the under–capitalised PSBs are likely to remain risk averse and lose market share.
The rating agency expects total outstanding supply of corporate bonds to increase from around ₹33 lakh crore in FY20 to ₹65 lakh crore-₹70 lakh crore in FY25, with innovations playing a key role.
Despite the Survey’s positive tone, the Sensex and Nifty 50 closed in the red, falling nearly 8% in a matter of five trading sessions from their January 21 life–high.
The controversy surrounding target rating points (TRPs) brings to the forefront the age-old question about how India’s ratings agencies need a new trust mechanism in order to be taken seriously.
The extension, which takes the total day-count of the lockdown to 54, will add to the challenges that the economy was already facing before Covid-19 took the shape of a pandemic.
