Bank Ratings

S&P Global Ratings on Tuesday assigned 'BBB' long-term rating to Bank of India (BoI) on sufficient capitalisation, solid funding, and healthy liquidity. The US-based agency said the ratings reflect the likelihood of extraordinary support for the state-run bank from the government, if needed. The long-term rating on BoI is one notch above its assessment of the stand-alone credit profile (SACP) for the bank, S&P said while assigning its 'BBB' long-term and 'A-2' short-term issuer credit ratings to the bank. 'BBB' rating denotes adequate capacity of the institution to meet its financial commitments. The stable outlook on long-term rating reflects our view that the bank will maintain its adequate capital position and solid funding and liquidity over the next two years. "We base our view on BoI's very important role as a public sector bank in promoting financial inclusion through increased access to deposits and lending. The bank has very strong links with the government via the ...

Analysts remain positive on Domestic Ratings business - CRISIL, CARE - and expect bond issuances to increase over coming quarters aided by monetary easing and softening corporate spreads.

State-owned lender has improved asset quality, been profitable for eight consecutive quarters

Lenders that had "substantial" unrealized securities losses and uninsured deposits may be hurt more as customers look for safer alternatives to park their funds

The banking sector is becoming more exposed to cyber crime after Covid-19 pandemic accelerated digitalisation and remote working, S & P Global Ratings said on Tuesday.Cyber attacks can harm credit ratings mainly through reputational damage and potential monetary losses, it said in a report titled 'Cyber Risk In A New Era: The Effect On Bank Ratings.'"Cyber attacks have had only a limited effect on bank ratings to date but can trigger more rating actions in the future as cyber incidents become more frequent and complex," said Credit Analyst Irina Velieva.Banks and other financial institutions are attractive targets for cyber criminals because they possess valuable personal data and play a critical role in servicing particular financial or economic needs and segments.Institutions with weak risk governance are less prepared for, and therefore more vulnerable to cyber attacks, said S & P in the report."Although it is crucial to learn from previous attacks and strengthen cyber-risk

The brokerage shifts focus to small lenders with niche operations and good asset quality