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S&P gives `BB` rating to SBI
Singapore, Apr 29: Standard and Poor`s Ratings Services today said it assigned its `bb` long-term foreign currency counterparty credit ratings to India`s largest commercial bank State Bank of India (SBI), indicating the outlook as stable.
Singapore, Apr 29: Standard and Poor's Ratings Services today said it assigned its 'bb' long-term foreign currency counterparty credit ratings to India's largest commercial bank State Bank of India (SBI), indicating the outlook as stable.
SBI's short-term foreign currency counterparty credit rating of 'B' is affirmed. At the same time, s and P's assigned its 'BB"/B' long-term and short-term local currency counterparty credit ratings to SBI, with a negative outlook.
The ratings on SBI acknowledge the bank's strong business profile, underpinned by its position as India's largest commercial bank, S&P said in a statement here. The bank's strategy and corporate vision to be the leading financial services group in India is soundly based, with assets of 103.7 billion dollars for fiscal year ended March 2003, and a market share of about 18 per cent of domestic deposits, and 17 per cent for advances.
SBI's operating efficiency and management information capabilities are expected to benefit from the upgrade of its it capabilities, which will support the bank's focus on the consumer banking sector, and the introduction of new products and services.
SBI's financial profile remains satisfactory, supported by its adequate asset quality and capitalization position. SBI's gross non performing assets are expected to edge up, after the 90-day non-performing asset classification standard came into effect March 2004.
This will, however, be mitigated by the bank's accelerated loan-loss provisioning practice. Its capitalisation, as measured by adjusted common equity-to-average assets ratio of 4.68 per cent in fiscal 2003, improved from 4.43 per cent in the previous fiscal year.
Bureau Report
The ratings on SBI acknowledge the bank's strong business profile, underpinned by its position as India's largest commercial bank, S&P said in a statement here. The bank's strategy and corporate vision to be the leading financial services group in India is soundly based, with assets of 103.7 billion dollars for fiscal year ended March 2003, and a market share of about 18 per cent of domestic deposits, and 17 per cent for advances.
SBI's operating efficiency and management information capabilities are expected to benefit from the upgrade of its it capabilities, which will support the bank's focus on the consumer banking sector, and the introduction of new products and services.
SBI's financial profile remains satisfactory, supported by its adequate asset quality and capitalization position. SBI's gross non performing assets are expected to edge up, after the 90-day non-performing asset classification standard came into effect March 2004.
This will, however, be mitigated by the bank's accelerated loan-loss provisioning practice. Its capitalisation, as measured by adjusted common equity-to-average assets ratio of 4.68 per cent in fiscal 2003, improved from 4.43 per cent in the previous fiscal year.
Bureau Report