MARKETS

BSE Prices delayed by 5 minutes... Prices as on Oct 19, 2018   ABB India 1273.3 [ -0.83% ]ACC 1422.9 [ -7.60% ]Ambuja Cements Ltd. 208.4 [ -4.45% ]Asian Paints Ltd. 1237.95 [ -1.45% ]Axis Bank Ltd. 562.2 [ -2.16% ]Bajaj Auto Ltd. 2510.15 [ -1.49% ]Bank of Baroda 102.15 [ 2.92% ]Bharti Airtel 286.85 [ -0.43% ]Bharat Heavy Ele 73.5 [ -0.54% ]Bharat Petroleum 284.35 [ -0.26% ]Britannia Ind. 5557.35 [ 0.49% ]Cairn India Ltd. 285.4 [ 0.90% ]Cipla 633.85 [ -0.98% ]Coal India 275.75 [ -1.39% ]Colgate Palm. 1098.15 [ 1.41% ]Dabur India 404.35 [ 0.65% ]DLF Ltd. 152.8 [ 5.78% ]Dr. Reddy's Labs 2546.65 [ -0.61% ]GAIL (India) Ltd. 343.55 [ -0.58% ]Grasim Inds. 875.95 [ -0.92% ]HCL Technologies 960.75 [ -6.16% ]HDFC 1661.3 [ -4.32% ]HDFC Bank 1965.8 [ -0.46% ]Hero MotoCorp 2711 [ -3.70% ]Hindustan Unilever L 1579.2 [ 1.16% ]Hindalco Indus. 226.75 [ -0.35% ]ICICI Bank 314.9 [ 0.06% ]IDFC L 37.25 [ -1.06% ]Indian Hotels Co 122.7 [ -2.27% ]IndusInd Bank 1576.5 [ -1.70% ]Infosys 682.6 [ -3.11% ]ITC Ltd. 288.45 [ 0.73% ]Jindal St & Pwr 166.2 [ -1.36% ]Kotak Mahindra Bank 1199.55 [ 1.83% ]L&T 1208.15 [ -0.26% ]Lupin Ltd. 877.6 [ -1.99% ]Mahi. & Mahi 741.5 [ -2.44% ]Maruti Suzuki India 6760.35 [ -1.72% ]MTNL 13.86 [ 0.95% ]Nestle India 9602.8 [ -1.21% ]NIIT Ltd. 73.9 [ 1.23% ]NMDC Ltd. 109.55 [ -1.04% ]NTPC 161.85 [ -0.55% ]ONGC 161.05 [ -0.65% ]Punj. NationlBak 66.1 [ -0.53% ]Power Grid Corpo 189.5 [ 0.21% ]Reliance Inds. 1101.65 [ -4.11% ]SBI 260.85 [ -0.11% ]Vedanta 211.15 [ 1.51% ]Shipping Corpn. 40.8 [ -4.23% ]Sun Pharma. 608.4 [ 2.52% ]Tata Chemicals 671.9 [ 0.19% ]Tata Global Beverage 227.65 [ -1.49% ]Tata Motors Ltd. 174.8 [ -2.46% ]Tata Steel 553.6 [ -0.19% ]Tata Power Co. 70.2 [ -3.04% ]Tata Consultancy 1917.05 [ -0.55% ]Tech Mahindra Ltd. 690.3 [ -3.98% ]UltraTech Cement 3609.45 [ -3.24% ]United Spirits 529.6 [ -0.68% ]Wipro Ltd 323.05 [ -0.29% ]Zee Entertainment En 455.2 [ -1.79% ]

News Details

You can view in detail.
Fitch downgrades viability rating of SBI, BoB on poor asset quality 13/06/2018 17:44

Fitch Ratings today downgraded the Viability Rating (VR) of State Bank of India and Bank of Baroda by one-notch, reflecting weak risk profile due to negative effect of poor asset quality.

Fitch, which has a negative sector outlook on Indian banks, however, affirmed the 'BBB' Long-Term Issuer Default Ratings (IDRs) of SBI, BoB, Canara Bank and Bank of India (BoI) with a stable outlook.

"Fitch has downgraded the Viability Rating (VR) of SBI and BoB by one-notch to 'bb+' and 'bb', respectively, reflecting their weakened intrinsic risk profile due to the negative effect of persistently poor asset quality and earnings on their capital position. The banks' core capital buffers also appear more vulnerable to moderate shocks," the ratings agency said in a statement.

As many as 19 of India's 21 state banks reported losses in the last fiscal, cumulatively wiping out almost all of the government's USD 13 billion capital injections during the year, Fitch said.

It said the one-notch downgrade of SBI's VR to 'bb+' from 'bbb-' reflects the bank's vulnerable core capitalisation from its prolonged asset quality problems and weak earnings.

"We believe more fresh capital is needed for growth and to manage heightened balance-sheet stress," Fitch said.

SBI's non performing loan ratio increased further to 11 per cent and have increased risk for core capitalisation, it added.

With regard to BoB it said the one-notch downgrade of BoB's VR to 'bb' from 'bb+' reflects increasing pressure on its capital position from extended financial weakness in terms of NPLs and earnings.

Its NPL ( non-performing loan) ratio jumped to 12.3 per cent. The bank's portfolio of watch-list loans is around 2% and can add to asset-quality pressure if NPL resolution slows, Fitch said.

LOAD MORE