Sept 11 (Reuters) -
* Fitch says Indian banks face $65 billion capital shortage by FYE19
* Fitch on Indian banks- capital needs have fallen from previous estimate of $90 billion, as a result of asset rationalisation and weaker-than-expected loan growth
* Fitch - weak capital positions have major negative influence on Indian banks' viability ratings, which will come under more pressure if problem not addressed
* Fitch on Indian banks- NPL resolution process being led by RBI could potentially release capital if recovery rates are as high as banks and government are hoping for
* Fitch on indian banks- "state banks are unlikely to be freed from their current gridlock unless npl resolution is accompanied by additional capital"
* Fitch on Indian banks - it is unlikely that state banks will grow at all in foreseeable future given their capital constraints Source text for Eikon: