new Delhi. After reducing India's outlook from stable to negative, Fitch Ratings on Monday revised the outlook for nine Indian banks to negative. The agency said it revised the outlook on banks' long-term Issuer Default Ratings (IDRs) from stable to negative, as these banks are highly dependent on the central government for re-capital.
The outlooks of Import-Export Bank of India, State Bank of India, Bank of Baroda, Bank of Baroda (New Zealand), Bank of India, Canara Bank, Punjab National Bank, ICICI Bank and Axis Bank Limited have been negative.
While Fitch has said in a statement, it has retained the IDR of IDBI Bank Ltd. while reducing the outlook to negative. "
Earlier on June 18, Fitch revised the scenario on India's 'BBB-' rating to negative from stable. This amendment was made in view of the impact on the Indian economy due to the Coronavirus epidemic.
The statement further stated, "These steps are based on Fitch's assessment of the high to medium probability of unprecedented government support for these banks."
According to the statement, the negative outlook on India's sovereign rating reflects an increased strain on the government's ability to provide unprecedented help, as challenges posed by the Kovid-19 pandemic have limited Sovereign's fiscal space and government The condition of the treasury has deteriorated considerably.
This post was published on June 22, 2020 10:07 pm
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