On Moody’s India’s rating upgrade,Chanda Kochhar, MD and CEO, ICICI Bank says, “It is also very heartening to note that Moody’s has taken cognizance of India’s higher growth potential and increased economic resilience as compared to other countries in our rating cohort. Reforms have been both economic and institutional and have been undertaken keeping in mind the holistic growth potential of the economy. The economic reforms have targeted overall formalization of the economy through manifold measures such as demonetisation, implementation of GST, direct benefit transfer, unique identification etc.
“On the banking front, the recent recapitalization measure and the formalization of the insolvency and bankruptcy code will strengthen the banks as also facilitate speedier resolution of NPAs. On the markets front, asset markets will react positively to this action and India is now on a higher footing than peers like Indonesia. The move is also good for capital flows into the country as a large part of international capital allocations are rating linked. This is also a huge positive for the Indian government and Indian corporates as it reduces borrowing costs for the government and will lead to lower credit risk premiums for corporates leading to cheaper cost of capital, added Chanda Kochhar.