New Delhi, May 20 -- Indian banks have shown a marked improvement in their risk profile and asset quality, according to a recent report by Fitch Ratings.

The global rating agency noted that this progress has led to upgrades in the Viability Ratings (VRs) of several large Indian banks.

Fitch said the recent VR upgrades reflect stronger underwriting standards, better loan diversification, improved asset quality, and stronger buffers to absorb losses. The upgrades signal that Indian banks are better prepared to handle financial stress than in the past.

It said, "The recent upgrades of Indian banks, Viability Ratings (VRs) reflect improved risk profile and asset quality".

In March 2025, Fitch upgraded the VRs of Punjab National Bank, Unio...