Differing with the downgrade accorded by Moody’s, leading ratings agency Standard & Poor’s (S&P) has upgraded the Indian banking sector saying its domestic regulations are in line with international standards.
The S&P said that in their view, the banking regulations in India are in line with international standards and the regulator Reserve Bank of India has a moderately successful track record. The rating agency S&P upgraded the risk profile Banking Industry Country Risk Assessments (BICRA) a notch higher to ‘Group 5’.
The latest Assessment of S&P comes a day after the US-based Moody’s changed the outlook for the sector to negative from stable, a move which evoked sharp criticism from Indian government and bankers.
The S&P, said the Indian banking system has level of stable, core customer deposit, which limit dependence on external borrowing.
