As the Coronavirus puts to test the economic stability of each country in the world, with factories and businesses closed- nations hailed for their firm base are exposing their bare side. The high volatility of the Indian trade sector is also bared with in the first week of a nationwide lock-down.
Moody’s, international market analyzers had to reframe the outlook of Indian banks as they expect a deterioration in the banks’ asset quality due to disruption in economic activity from the coronavirus outbreak. According to this observation, Moody’s had changed the Indian banks’ outlook from Stable to ‘Negative’ on Thursday.
Moody’s said the Indian Banks asset quality will deteriorate all across the corporate, small and medium enterprises and retail segments, leading to pressure on profitability and capital.’The lock-down will exacerbate a slowdown in India’s economic growth’ Moody’s added.