Moodys affirms deposit ratings for 3 banks but downgrades 2 Indian banks
“The outlooks on all the ratings of these banks, where applicable, are Positive,” Moodys said. In case of ICICI Bank and Axis Bank, strong buffers, high level of capital, provision coverage and profitability have ensured higher ratings.
Bank of India and Canara Bank faced a downgrade of BCA because of the increasing levels of non-performing loans, Moodys said. In case of the public sector lenders, the ratings maybe upped if the asset quality metrics of these lenders improve and they are able to demonstrate access to the capital markets to raise funds.
The ratings agency also assigned counterparty risk (CR) assessment to 12 Indian banks. CR assessments are opinions of how counterparty obligations are likely to be treated if a bank fails, and are distinct from debt and deposit ratings. Banks include ICICI Bank, HDFC Bank, Axis Bank, Yes Bank and eight public sector banks - Bank of India, Bank of Baroda, Canara Bank, Central Bank of India, Indian Overseas Bank, Punjab National Bank, Syndicate Bank and Union Bank of India.
Moody's Maintains its Negative Outlook for Indian Banking System Click here