The Indian banking sector demonstrated strong residence during the global financial crisis and was able to maintain profitability, with asset quality remaining relatively unaffected.

Microfinance, India's sub-prime crisis

MFIs were in a hurry to grow and lend, thanks to their private equity investors.

Imagine that your maid borrowed Rs 30,000 from you, promising to repay within a year from her monthly wage of Rs 4,000. Do you think you could cut Rs 2,500 from her monthly wages, every month? First of all, do you expect her to repay anything? Would you charge any interest on your lending?

ECB policy eased to encourage inflow of foreign currency

The Reserve Bank of India has enhanced the all-in-cost ceiling for overseas loans by 50 basis points. The all-in-cost over six-month London Inter Bank Offered Rate for loans of three to five years maturity has been increased from 300 basis points to 350 basis points.

Brickwork Ratings maintains 'stable' outlook for Indian banking sector

Rating agency Brickwork Ratings has maintained a "stable" outlook for the Indian banking sector in the coming six to twelve months.

Record Corporate Debt Downgrades in Third Qtr

725, or 6.8% of total, bonds downgraded raising fears of defaults and rise in NPAs of banks
India’s credit rating agencies have downgraded a record number of debt instruments in the three months to September, reflecting the stress on companies because of rising interest rates, higher input costs and falling demand.

Other raters react cautiously

Credit rating agency Moody's rating downgrade of State Bank of India caused markets to tremble a bit today. Other rating agencies, however, reacted cautiously to the move. Although international rating agencies typically tend to follow each other's rating moves that may not necessarily happen this time

Banks must pay higher premium on the basis of lending riskiness: Brickworks Ratings

Mumbai, Oct 9: Rating agencies think the deposit insurance scenario in India is comfortable. They say there is no cause for alarm even if the proportion of insured deposits has come down over the years.

Mr Vivek Kulkarni, Managing Director, Brickwork Ratings, said, "If you look at 'Assessable deposits' – i.e., deposits which do not include inter-bank deposits/corporate deposits...