Despite weak results for 2017-18, no downgrades of banks: S&P

Global rating agency Standard and Poor’s (S&P) on Thursday said ratings for Indian banks are likely to be weak for 2017-18, owing to recent changes made by the Reserve Bank of India (RBI) for recognition of restructured assets.

“The central bank’s recently announced change to the recognition of restructured loans will probably foster early recognition and higher provisions across the banking sector,” said S&P

, adding that other announcements, such as smoothing provisioning for mark-to-market losses on investments over four quarters, will temper but not offset the immediate burden from strained performances.

Its comments come at a time when most banks have begun to announce their results for the quarter ended March 31 as well as for the full financial year 2017-18. For full report please click on the following link: