Moody's pegs India's growth to be 7.2% this fiscal and 7.4% in next

New Delhi, Dec 3: Moody's Investors Service's annual Banking System Outlook has estimated that India's GDP growth could be 7.2 percent for the financial year ending March 2019. Moody's also predicted that for next financial year, i.e. 2019-2020, it could be 7.4 percent.

Banks are largely deposit funded and liquidity coverage ratios of all banks are above 100%. Funding and liquidity of public sector banks will remain resilient, notwithstanding their solvency challenges, reports quoted Moody's Investors Service's annual Banking System Outlook report as saying.

"Operating environment will be stable,supported by robust economic growth.We expect real GDP to grow 7.2% and 7.4% in year ending March 2019 and in following year, respectively, driven by investment growth and strong consumption," it further said.

India's economy grew at 7.1 per cent in the July-September quarter, lowest in three quarters, but still remained ahead of China to retain the tag of the world's fastest growing major economy. The Gross Domestic Product (GDP) at constant prices (2011-12) had grown at 6.3 per cent in the July-September quarter of the last fiscal, according to government data released Friday.

The size of the GDP in the second quarter of 2018-19 is estimated at Rs. 33.98 lakh crore, as against Rs. 31.72 lakh crore a year ago, showing a growth rate of 7.1 per cent, according to a statement of the Central Statistics Office (CSO). The Indian economy grew at 8.2 per cent in the April-June quarter of this