A report released by Moody's on the performance of Asian banks indicated that the Indian banking sector is rated with a stable to positive outlook. Moody's report stated that traditionally the Indian banking sector has been focussing on industrial credits.  The recent shift of focus on the to loans is yet to complete a full credit cycle test. The report further cautions that the shift towards retail loans and their performance under unfavorable conditions would be a decisive ratings driver for the Indian banking sector. Moody's also said that Indian banks face higher risks due to fixed income securities and also suffers from an undiversified earnings profile, which is largely geared towards interest income. Moody's report also took note of the reserve bank of India's efforts to strengthen regulatory and supervisory framework, for the banking sector.