Besides, gross non-performing assets (NPAs) could peak in current fiscal, but elevated levels of provisioning on these NPAs will continue to negatively affect the banks during fiscals 2018 and 2019, Moody's Indian affiliate ICRA said.
"Upon reviewing the rating engagements with various foreign rating agencies, IDBI Bank has decided to terminate all the rating contracts/engagements with Moody's Investors Services (Moody's) for various issues made under the MTN (medium term note) Bond Programme," IDBI Bank said in a regulatory filing.
In a Credit Outlook article, Moody's said that it signals improved access to the equity capital markets and will reduce PSBs' dependence on fund infusion from the government.
The 8-10 percent figure applies to combined traffic growth of domestic as well as international sectors.
Recently, the US-based Moody's upgraded India's sovereign rating after a gap of 13 years to Baa2, with 'stable' outlook, from Baa3 earlier, citing improved growth prospects driven by economic and institutional reforms.
Indian and Chinese banks are the most exposed to high corporate leverage risks, followed by those in Indonesia, Vietnam, Korea and Hong Kong, it said.
Moody's recently upgraded India's sovereign rating to Baa2 and said it expects GDP to expand by 6.7 per cent in 2017-18 fiscal, making it one of the world’s fastest-growing economies.
The three were associated with Guangdong-based Guangzhou Boyu Information Technology Company, known as Boyusec, which some Western security analysts allege has links to the Chinese Ministry of State Security.
A sovereign rating indicates a country’s risk profile and another rating upgrade after Moody's will enhance India’s position as an investment destination for foreign investors
But the report said downside risks to its expectation include GDP growth falling below 6 percent and weakening of commodity prices, resulting in lower pretax growth.
The Moody's upgrade, the first since January 2004, lifted India up a notch to the second-lowest level of investment grade. Standard & Poor's and Fitch have had the country, the third-largest economy in Asia, at the lowest investment grade level for about a decade.
Moody’s upgrade along with the recognition by the IMF chief and the World Bank sends out the clear message that the Indian economy is on the right track.
The current financial year is a 'transitional' one, bearing the impact of reforms like demonetisation and GST
"The government is trying to represent the upgradation of India's ranking by Moody's rating agency as a sign of progress. But what is this rating all about? This rating tells us in which country the industrialists and investors will have more profit," he said at a party programme here.
Congress accused the Modi government of "clutching at straws" to reclaim the lost credibility and said the government and the ratings agency Moody's have failed to gauge the mood of the nation
The rating which has come after a gap of almost 13-years is a sentiment booster and positive for flows into equities and debt market
If one were to look at the underlying fundamentals then the market looks overvalued but currently they are driven by liquidity, which is still in place, said Gautam Chhaochharia, ED & Head-India Research, UBS.
Congress communications in-charge Randeep Surjewala also sought to downplay Moody's rating upgrade of India, saying the same agency had miscalculated US subprime mortgages before the economic meltdown.
The US-based Moody's today upgraded India's sovereign credit rating by a notch to 'Baa2' with a stable outlook, citing improved growth prospects driven by economic and institutional reforms. The rating action may act a catalyst of sorts for those foreign investors eyeing India, say analysts.
Deepak Parekh, Chairman, HDFC said the rating agencies have not been fair to India, the upgrade was long overdue.
Shares of PNB surged 6 per cent, Bank of Baroda soared 5.17 per cent, Yes Bank gained 4.16 per cent, SBI (3.91 per cent) and ICICI Bank (3.55 per cent) on BSE.
In effect, India has become the largest economy among Baa2-rated sovereigns, according to Moody's.
Tyagi also said the rating upgrade to Baa2 would further boost investments including foreign inflows.
The US-based Moody's upgraded India's sovereign rating after a gap of 13 years to Baa2, with 'stable' outlook, from Baa3 earlier, citing improved growth prospects driven by economic and institutional reforms. "Moody's upgrading India's Ratings is a reflection of India growth story and sound economic principles for a #NewIndia.
Jaitley said the government will maintain fiscal discipline and will "continue to maintain the glide path."