By Admin 
S & p global upgrades credit ratings: After upgrading India’s ratings, the global rating agency S&P has now increased the rating of 10 big financial institutions including SBI, HDFC Bank and Tata Capital. This step was taken by the US agency on Friday. A day earlier, on Thursday, India’s Sovereign Credit Rating S&P increased ‘BBB’ after more than 18 years.
S&P Global Ratings said that the financial institutions of India will continue to take advantage of the strong economic growth of the country. The agency believes that these institutions will benefit from focusing on the domestic sector and structural reforms in the system.
Increased ratings of seven banks
The Global Rating Agency has upgraded the ratings of seven Indian banks – Indian banks – Indian State Bank, ICICI Bank, HDFC Bank, Axis Bank Limited, Kotak Mahindra Bank, Union Bank of India and Indian Bank -. Apart from this, the long -term credit rating of three financial companies – Bajaj Finance, Tata Capital and L&T Finance – has also been increased.
S&P says that India’s banks will maintain their property quality, profitability and capitalization in the next 12 to 24 months, even if there is pressure in some sectors. The agency also stated that the credit risk in the banking system has decreased.
What will be the benefit of this?
The rating of many financial institutions is limited to India’s government credit rating, as the government has a direct and indirect impact on the banking system. The agency said that the Insolvency and Recordment Disability Code (IBC) has made significant improvements in the rule of payment culture and law in India.
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