Budget credit negative for PSBs: Moody’s
New Delhi, March 3
Moody’s Investors Service today said the Budget for 2016-17 is “credit negative” for PSU banks as the capital infusion road map falls short of the required Rs 1.45 lakh crore.
“The Budget is credit negative for public sector banks because the government has stuck to its capital infusion road map announced in 2015, budgeting Rs 25,000 crore in injection,” says Srikanth Vadlamani, Moody’s vice-president and senior credit officer. Moody’s, in a statement, said the Union Budget is moderately credit positive for most sectors, but credit negative for public sector banks because of the insufficient allocation of capital for the segment.
“We believe that unless the banks receive Rs 1.45 lakh crore for the four fiscal years ending March 31, 2016 to March 31, 2019, their credit profiles will worsen,” added Vadlamani. pti
