 "Downgrade cloud on Syndicate Bank")
India Ratings has downgraded its outlook on Syndicate Bank’s existing Tier-I and Tier-II bonds from ‘stable’ to ‘negative’, due to a weakening credit profile of the Manipal-based public sector lender.
The revision reflects a perception of elevated levels of credit costs, stretched profitability and limited visibility on meaningful capital infusion. Syndicate’s Common Equity-1 level of 7.5 per cent at end-March was weaker than other ‘AA+’ rated peers.
The bank would need Rs 4,640 crore of Tier-I capital to maintain a Tier-I ratio of 10 per cent (including a capital conservation buffer of 2.5 per cent) by the end of 2018-19.
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