InvestorQ : Why hash Moody’s raised concerns over the health of Indian banks?
sarah Leo made post

Why hash Moody’s raised concerns over the health of Indian banks?

Answer
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vidhya Laxmi answered.
7 months ago


This concern is very specific to the exposure of Indian banks to the real estate sector. Moody’s has warned about the RBI decision to not classify real estate loans as restructured for one year. It has observed that this could actually be credit negative for banks as it will lead to delay in recognition of such loans from the realty sector. This back ending of risk is what Moody’s is concerned about. The rating agency is also of the view that this does not address the real issue of weak NBFC lending and rising real estate inventory.