S&P Global Ratings Deepali Seth-Chhabria on India’s Banking Sector

The video discusses the potential upside for Indian banks if credit conditions stabilize and NPR resolutions progress. It highlights the impact of revised GDP growth projections on asset quality and systemic risk. Concerns about retail lending, particularly unsecured loans, are addressed, noting their vulnerability to job losses. The Reserve Bank's liquidity measures are examined, emphasizing their role in supporting the banking system. Finally, the performance of private sector banks is compared to public sector banks, with a focus on resolving weak assets.

What role does the Reserve Bank play in supporting the banking system during economic challenges?

What differences exist between the performance of private sector banks and public sector banks?

What steps are suggested for public sector banks to improve their profitability?