New Delhi, Jan. 6 -- Global credit rating agency Fitch Ratings on Tuesday said a tighter risk framework is helping in strengthening India's bank operating environment, reflecting improving systemic resilience and risk controls in the Indian banking sector.

In its latest research, Fitch noted that "India's Loans Under Forbearance Have Declined", indicating fewer distressed exposures and a return to more disciplined credit practices. The agency said the reduction of such temporary relief measures introduced during earlier stress periods has improved transparency around asset quality and credit risk.

"We believe regulatory responses to stress events, frameworks for monitoring risks and recovery of impaired loans have improved in recent yea...