According to Moody's, the financial system in India has a "stable" future.

On March 12, the international ratings firm Moody's Ratings stated that it had a "stable" prognosis for India's banking system, "backed by sound economic growth and strong bank fundamentals." We see a stable prognosis for the financial system in India. With the support of government capital spending, tax breaks for middle-class income groups to increase consumption, and monetary easing, we anticipate that the operating environment for banks will continue to be positive," the ratings agency stated. In the fiscal year that ends in March 2026 (fiscal 2025-26), we anticipate that India's real GDP growth will surpass 6.5%. Following significant gains in recent years, banks' asset quality will somewhat decline, with unsecured retail loans, microfinance loans, and small business loans experiencing particular strain. Because net interest margin (NIM) declines are anticipated to be slight in the context of modest rate cuts, banks' profitability will continue to be sufficient," it continued. A day before to the Moody's assessment, IndusInd Bank's stock fell 27% after the company disclosed derivative losses that might reduce its net worth by 2.35%. With the help of easy access to a robust domestic equity market and internal capital creation that keeps up with asset development, banks will continue to retain high capitalization. Loans will increase in tandem with deposits, while banks' funding and liquidity will remain steady. According to Moody's, "we continue to expect strong government support for banks in times of need."