S&P Global Ratings has responded to the Reserve Bank of India’s (RBI) recent regulatory actions, predicting a decline of 60 basis points in the Tier-1 capital adequacy of Indian banks.
According to S&P Global Ratings, these actions include a substantial increase in risk weights on unsecured personal loans, credit cards, and loans to nonbank finance companies (NBFCs), aiming to curb riskier lending practices and bolster overall financial stability.
