S&P assigns stable outlook to 10 Indian banks

S&P assigns stable outlook to 10 Indian banks
New Delhi: Global rating agency Standard & Poor's (S&P) on Thursday affirmed investment grade with 'stable' outlook to 10 Indian banks, including State Bank of India, ICICI Bank, HDFC Bank and IDBI Bank.

The rating affirmation came after applying new ratings criteria for banks, Standard & Poor's said in a statement.

The banks, which are part of the list include Axis Bank, Bank of India, HDFC Bank, ICICI Bank, IDBI Bank and Indian Bank.

Besides, other banks which have been provided investment grade are State Bank of India, Indian Overseas Bank, Syndicate Bank and Union Bank of India.

The rating action for domestic banks comes a day after S&P downgraded as many as 15 large banks globally, including some big American names like Bank of America, Citigroup and Goldman Sachs coming as a major blow to the already-struggling banking sector in a weak global economic scenario.

Standard and Poor's has also cut ratings for US-based banking giants like JP Morgan, Morgan Stanley, Wells Fargo, while some European banking titans like Barclays, HSBC, Lloyds Banking Group, RBS (Royal Bank of Scotland) and Rabobank have also been downgraded.

Earlier in October, another global ratings firm Moody's downgraded its rating of State Bank of India's (SBI) financial strength by one notch to 'D+' on account of the lender's low Tier-I capital ratio and deteriorating asset quality.

The Moody's move had evoked sharp reactions from the government and bankers who described the move as 'unwarranted' as the domestic banks are better than their global counterparts.

PTI