Fitch revises outlook of 10 banks and FIs to ‘Stable’
The outlook of ten Indian banks and Financial Institutions (FIs) have been revised to ‘stable’ from ‘negative’ by rating agency Fitch. The upgrade is despite the fact that the rating agency expects Non-Performing Loans (NPLs) and restructured assets to continue to rise in the financial year ending March 2014.
The banks and financial institutions whose ratings have been revised include State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), Bank of Baroda (New Zealand) Limited (BOBNZ), Canara Bank (Canara), IDBI Bank Ltd. (IDBI), ICICI Bank Ltd. (ICICI), Axis Bank (Axis), Export-Import Bank of India (EXIM), and Housing and Urban Development Corporation Ltd. (HUDCO).
The international rating agency has also affirmed their ‘BBB-‘ long-term Issuer Default Ratings (IDRs).
As per Fitch Ratings, Non-Performing Loans (NPLs) and restructured assets may continue to rise in the financial year ending March 2014. Government banks’ stressed assets were at 11.59% as of end-2012 against the sector average of 9.61%.