A recent research of Fitch reveals that Indian banking sector is going to experience a strain in the coming financial year. The report has mentioned that the weak macro environment in the asset quality will bring this downstream condition to the economy. The rating agency also confirmed that this weaker condition in asset quality will wind of increasing of the interest rate of Non Performing Loans. However, the hopeful news is that, it will also help to enhance the all over financial market of Indian economy. The Indian economy will enjoy a growth in a slow way.
Fitch also informs that in the end of 2013, the low profile of asset quality of private and public bank sector will bring down the rate of asset return to a remarkable point which is amount to 10 basis points.