Indian bank shares on Friday led declines and fell upto 15% after global credit rating agency Moody’s Investors Service changed the outlook for the country’s banking system from stable to negative, PTI reported.

Indian shares also ended lower as coronavirus cases rose to 2,301, while oil prices advanced on hopes of a global supply cut. The Sensex closed down 2.39% lower at 27,590.95 and the broader National Stock Exchange Nifty 50 fell 2.06% to 8,083.80.

Shares of RBL Bank tumbled 15.5%, followed by private-sector lender Axis Bank (8.85%) and state-owned Indusind Bank (8.33%). Meanwhile, ICICI Bank fell 7.44%, Federal Bank by 3.87% and City Union Bank shed 3.71%.

Moody’s changed the outlook for Indian banking system to negative from stable on Thursday. The firm had said it expects deterioration in banks’ asset quality because of disruption in economic activity from the coronavirus pandemic. It added that the asset quality of the banks will deteriorate across the corporate, small and medium enterprises and retail segments, leading to pressure on profitability and capital.

Meanwhile, American credit rating agency Fitch Ratings’ company slashed India’s growth forecast for the current fiscal from 5.1% to 2%. It said economic recession has gripped global economy after the coronavirus lockdown.

“Fitch now expects a global recession this year and recently cut our GDP growth forecast for India to 2% for the fiscal year ending March 2021 after lowering it to 5.1% previously, which would make it the slowest growth in India over the past 30 years,” it said in a statement.

The Asian Development Bank also reduced its economic growth forecast for India for the financial year of 2020-’21, saying it is likely to slow down to 4% amid the global economic meltdown triggered by the coronavirus pandemic. Its last projection was 6.5%.

The number of Covid-19 cases globally has crossed ten lakh, according to Johns Hopkins University data. The toll is now over 54,000. More than 2.18 lakh people have recovered worldwide.