Indian banks likely to be hit hard by global market volatility

In its report titled "Asian Banks Bracing For Triple Whammy Of Write-Downs, Tightening Markets, And Economic Slowdown", Standard&Poor has stated that Indian banks with significant exposure to the realty and home mortgage segments are comparatively more susceptible than other Asian banks to the volatility in the global market.

Property prices are expected to decline, thus having an adverse effect on the quality of commercial property and residential mortgage portfolios of Asian banks.

Banks in Asia will have to deal with sub-prime write-downs, tightening credit markets, and the US economic slowdown, with the last mentioned potentially the most significant.