The outlook on the Indian banking System for next 12 to 18 months remains
negative due to challenging operating environment which is likely to pressure
" This environment is characterised by slow economic growth,high inflation,high
interest rates and a weak local currency" says Vineet Gupta,Vice President and
Senior Analyst Moody's." We expect these factors to lead to further deterioration
of asset quality,an increase in provisioning costs and a fall in profitability" he added.