P J Nayak report implementation can improve ratings of public sector banks, says Fitch Ratings

....."Should the (PJ Nayak report) recommendation lead to a greater separation between the state and bank, it could necessitate a reassessment of our current assumptions on the propensity for extraordinary support for these banks. This has been an important factor underpinning the capitalisation of many PSUs, as this reassessment could have a potential impact on their issuer default ratings," Fitch said in a note. 

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