Moody's puts ratings of 13 Indian banks on watch
Global rating agency, Moody's on Friday placed the ratings of 13 Indian lenders, including State Bank of India and ICICI Bank, on review for possible downgrade.india Updated: May 29, 2009 21:52 IST
Global rating agency, Moody's on Friday placed the ratings of 13 Indian lenders, including State Bank of India and ICICI Bank, on review for possible downgrade.
The decision follows fears of government's inability to support banks in the event of a continued crisis, Moody's said in a press release.
The agency, which had previously used the local currency deposit ceiling (LCDC) as an indicator of national government's ability to support banks, said LCDC may not be adequate if the crisis in financial markets continues.
"This (LCDC) might overestimate the capacity of a central bank to support financial institutions in the event of banking crisis becoming both truly systemic and protracted," Moody's said.
Other banks, which have been kept under watch are Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank, HDFC Bank,, IDBI Bank, Union Bank of India, Axis Bank, Central Bank of India, Syndicate Bank and Oriental Bank of Commerce.