September 12, 2017 / 3:54 AM / 10 months ago

BRIEF-Fitch says Indian Banks face $65 billion capital shortage by FYE19

Sept 11 (Reuters) -

* Fitch says Indian banks face $65 billion capital shortage by FYE19

* Fitch on Indian banks- capital needs have fallen from previous estimate of $90 billion, as a result of asset rationalisation and weaker-than-expected loan growth

* Fitch - weak capital positions have major negative influence on Indian banks’ viability ratings, which will come under more pressure if problem not addressed

* Fitch on Indian banks- NPL resolution process being led by RBI could potentially release capital if recovery rates are as high as banks and government are hoping for

* Fitch on indian banks- “state banks are unlikely to be freed from their current gridlock unless npl resolution is accompanied by additional capital”

* Fitch on Indian banks - it is unlikely that state banks will grow at all in foreseeable future given their capital constraints Source text for Eikon:

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