Notably, the board of Reserve Bank of India (RBI), last week decided to transfer a record Rs 2.1 trillion dividend to the government out of the profits earned in fiscal 2023-24.
It added the Indian economy also continues to benefit from high bank credit growth and infrastructure spending, with more to come from the latter.
As per Fitch, operating environment for banks will most likely remain challenging against this backdrop.
The trend, thereby, lowers the downside risks for OMCs credit metrics, it said.
Fitch forecasts real GDP to rebound by 11 per cent in FY22 (2021-22) and grow around 6.6 per cent per annum through FY26.
Standard & Poor’s has already observed that the recession caused by the pandemic will have a deeper and longer impact on lenders than apprehended earlier and that gross NPAs may jump to 14 per cent in the current financial year, up from 8.5 per cent.
FY20 (April 2019 to March 2020) fiscal EBITDA growth for the telecom industry is estimated at 25 per cent.
After the World Bank, global rating agency Fitch on Thursday projected India’s economic growth for next year to be 7.3…
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