Speaking exclusively to CNBC-TV18, Ananda Bhoumik of Fitch Ratings says their research finds that the loan loss provisions of banks, due to Reserve Bank of India’s dictate are higher now. "And, hence, Indian banks are now entering this phase of difficult times with better profitability than in 2008," he said.
Fitch Ratings have dissected the banking scene of India to find how resilient it is today, as compared to the pre-crisis period of 2008. Speaking exclusively to CNBC-TV18, Ananda Bhoumik of Fitch Ratings says the research finds the good part that credit losses in this sector are expected to be manageable.
"Recoveries from non-performing loans (NPLs) are expected to be higher than the average of 30% to 50%. Also, tier I, one year ratio and loan loss provisions are better off this time across the board," says Bhoumik.
Further, he says that the loan loss provisions due to Reserve Bank of India