New Delhi, March 4 -- Fitch Ratings on Monday reported that Indian banks have performed robustly in the first nine months of the current financial year, with the sector's impaired loan ratio approaching its lowest point.

The global rating agency stated that improvements in key performance metrics of Indian banks over recent years will provide strong support for their Viability Ratings.

According to Fitch, Indian banks' risk appetites have been more calibrated since 2018, with efforts to diversify loans and improve the quality of corporate exposures contributing to lower bad loan formation.

The improvement in banks' gross impaired loan ratios and earnings has been driven by lower legacy bad loans.

However, Fitch noted that these risk e...