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BRIEF-Fitch- prospects for bad loan clean-up at Indian banks improving
May 12, 2017 / 3:38 AM / 4 months ago

BRIEF-Fitch- prospects for bad loan clean-up at Indian banks improving

May 11 (Reuters) -

* Fitch on Indian banks-

* Prospects for bad loan clean-up at Indian banks improving

* Believe that asset resolution will be a dominant theme in the sector over the next few years

* Regulation to speed up resolution is next step to follow asset-quality review and other measures

* Increased powers given to RBI to clean up asset quality, to intervene at earlier stage, represents important positive step toward healthy banking system

* Resolution of non-performing loans likely require significant haircuts if re-priced loans attract attention from private investors

* State banks are likely to report low returns on assets for FY17 and any material recovery is likely to be delayed

* Bank loan growth looks set to remain low for the next one to two years Source text for Eikon:

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