Fitch: Demonetisation May Delay Indian Bank Asset-Quality Recovery

(The following statement was released by the rating agency)

MUMBAI/SINGAPORE, January 30 (Fitch) Demonetisation is likely to

push back the

recovery in Indian banks' asset quality, given the disruptive

impact that cash

shortages have had on the country's large informal economy,

Fitch Ratings says.

Cash shortages caused by the demonetisation of

large-denomination currency notes

have affected the income of many borrowers - by holding back

economic activity -

and reduced their short-term repaym

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