IBPS PO – IBPS PO TEST - 8

Read the following passage carefully and answer the questions given below.<br> Indian banks are likely to reduce leading rates further after having cut base leading rates by 70­90 basis points (BPS) in the past few quarters, according to S & P Global Ratings.<br> However, it said credit growth in India has fallen sharply, reflecting weak corporate credit demands as well as capital challenges that most public sector banks are facing. The global raling agency expects loan growth in India's banking sector to be between 11 and 13 percent in fiscal 2017. "We anticipate that corpor capital spending will be work given low capacity utilization and high leverage in certain sectors" Banking sector.<br><br> Banks in India and China will continue to face pressure on their asset quality, profitability and capitalization over the next 12.24 months according to the report. China's credit growth has also been on a downward trend, the report notes. However, S&P Global rating believes that slower credit growth is necessary to support long - term macroeconomic stability in China likewise, China's financial reforms, local government debt swaps, and deepening domestic <strong>debt</strong> capital market will shrink bank profitability and asset yield.<br><br> "We believe that NIMs will compress for Indian banks with corporate focus and higher bad loans, said S & P Global Rating credit analyst Amit Pandey ." Continuing high credit costs mill also <strong>limit</strong> any meaningful improvement in profitability.<br> "We expect economic risks to remain high for Indian and Chines banks, which will </strong>constrain<strong> their credit profiles," Said S & P Global Rating credit analyst Geeta Chugho" India's economic risk trend is negative. Prolonged weakness in the asset quality of Indian banks could lead us to assess the economic risk have increased." Ms. Chugh Said.

What are the most public sector banks in India confronting?

Read the following passage carefully and answer the questions given below.<br> Indian banks are likely to reduce leading rates further after having cut base leading rates by 70­90 basis points (BPS) in the past few quarters, according to S & P Global Ratings.<br> However, it said credit growth in India has fallen sharply, reflecting weak corporate credit demands as well as capital challenges that most public sector banks are facing. The global raling agency expects loan growth in India's banking sector to be between 11 and 13 percent in fiscal 2017. "We anticipate that corpor capital spending will be work given low capacity utilization and high leverage in certain sectors" Banking sector.<br><br> Banks in India and China will continue to face pressure on their asset quality, profitability and capitalization over the next 12.24 months according to the report. China's credit growth has also been on a downward trend, the report notes. However, S&P Global rating believes that slower credit growth is necessary to support long - term macroeconomic stability in China likewise, China's financial reforms, local government debt swaps, and deepening domestic <strong>debt</strong> capital market will shrink bank profitability and asset yield.<br><br> "We believe that NIMs will compress for Indian banks with corporate focus and higher bad loans, said S & P Global Rating credit analyst Amit Pandey ." Continuing high credit costs mill also <strong>limit</strong> any meaningful improvement in profitability.<br> "We expect economic risks to remain high for Indian and Chines banks, which will </strong>constrain<strong> their credit profiles," Said S & P Global Rating credit analyst Geeta Chugho" India's economic risk trend is negative. Prolonged weakness in the asset quality of Indian banks could lead us to assess the economic risk have increased." Ms. Chugh Said.

Why are Indian banks likely to leading rates ?

Read the following passage carefully and answer the questions given below.<br> Indian banks are likely to reduce leading rates further after having cut base leading rates by 70­90 basis points (BPS) in the past few quarters, according to S & P Global Ratings.<br> However, it said credit growth in India has fallen sharply, reflecting weak corporate credit demands as well as capital challenges that most public sector banks are facing. The global raling agency expects loan growth in India's banking sector to be between 11 and 13 percent in fiscal 2017. "We anticipate that corpor capital spending will be work given low capacity utilization and high leverage in certain sectors" Banking sector.<br><br> Banks in India and China will continue to face pressure on their asset quality, profitability and capitalization over the next 12.24 months according to the report. China's credit growth has also been on a downward trend, the report notes. However, S&P Global rating believes that slower credit growth is necessary to support long - term macroeconomic stability in China likewise, China's financial reforms, local government debt swaps, and deepening domestic <strong>debt</strong> capital market will shrink bank profitability and asset yield.<br><br> "We believe that NIMs will compress for Indian banks with corporate focus and higher bad loans, said S & P Global Rating credit analyst Amit Pandey ." Continuing high credit costs mill also <strong>limit</strong> any meaningful improvement in profitability.<br> "We expect economic risks to remain high for Indian and Chines banks, which will </strong>constrain<strong> their credit profiles," Said S & P Global Rating credit analyst Geeta Chugho" India's economic risk trend is negative. Prolonged weakness in the asset quality of Indian banks could lead us to assess the economic risk have increased." Ms. Chugh Said.

What do Indian banks count on ?