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May 28, 2026
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Indian banks more exposed to West Asia crisis among APAC region: Moody's
Moody's Ratings on Wednesday said Indian banks are among the more exposed in the Asia-Pacific region, given the economy's high dependence on energy imports from West Asia and the consequent pressure on inflation, interest rates and borrower cash flows.
Moody's said higher fuel costs will strain consumers' budgets and raise debt-servicing burdens for households and SMEs, translating into increased, though gradual, credit stress in these loan portfolios.
"Indian banks are among the more exposed in the region, given the economy's high dependence on energy imports from the Middle East and the consequent pressure on inflation, interest rates and borrower cash flows," the US-based agency said in a report.
It said sustained high energy prices due to the prolonged West Asia conflict will impact Asia-Pacific (APAC) banks' credit profiles via their loan portfolios and financial channels.
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