S&P Global Ratings has upgraded four Indian financial institutions, including Union Bank of India and Bajaj Finance, reflecting the view that good economic prospects and structural improvements would continue to benefit domestic financial institutions. The agency expects the country's financial sector to see its weak loans ratio improve from 5.2% of gross loans on 31 March 2023 to 3-3.5% by 31 March 2025, and for public sector banks' capital positions to be sustained. Additionally, S&P expects bank earnings to be similar to those in other emerging markets but has suggested falling margins could be caused by deposit repricing.