India banks ready to adopt Basel III, says S&P analyst

Lending institutions in India will encounter capital challenges in coming years but will be able to implement the Basel III requirements, a credit analyst working for major ratings agency Standard & Poor's stated recently.

Lending institutions in India will encounter capital challenges in coming years but will be able to implement the Basel III requirements, a credit analyst working for major ratings agency Standard & Poor's stated recently.

Credit analyst Geeta Chugh stated during a conference call that the Asian nation's corporate sector is dragging down the value of bank assets, according to The Economic Times. Chugh predicted that the corporate sector would start to come out of its slump in the second half of 2014, Business Standard reports.

The major ratings agency did not change its outlook for the banks of Asia's second-largest economy, keeping it at negative, according to the news source. S&P refused to provide any of the lending institutions in the nation with a credit rating above the one given to the entire nation.

The major credit ratings agency added that in the short-term, the woes of this sector of the economy could worsen, writing in a report that "the troubles for the banking system here are likely to increase in the next 12 months due to slow economic growth and sluggish fiscal reforms," The Economic Times reports. 

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