Fitch says note ban impact to be mixed, retains 'negative' outlook for banking sector

Fitch re-affirmed its "negative" outlook for India's banking sector, saying the financial standing remained "fragile" without bigger capital injections and that the government's action on banknotes could end up having a mixed impact.

Fitch Ratings said the government's move to remove higher-value banknotes from circulation would lead to a surge in deposits, allowing lenders to eventually lower lending rates and lower costs to service the sector's debt. But it also noted that the overall impact.....

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