New Delhi: Moody''s rating agency in its banking system outlook on India, released in Hong Kong today, has given stable outlook for India''s banking industry, and has said that the rating is driven by relatively solid financial metrics amid a benign operating environment conducive to credit growth.

Moody''s Investor Service said the stable rating outlook for Indian banks reflects the country''s robust credit growth against the backdrop of a favourable economic milieu.

Stating that implicit government support for systemically important banks has lifted the global local currency (LLC) deposit ratings of most rated banks, it said.

Moody''s said there is scope for consolidation in India''s relatively crowded and fragmented banking system, which is likely to increase as competition intensifies.

It further said the Indian economy continues its growth trajectory with GDP growing at 9.4 per cent during the fiscal year ended March 2007.