Fitch affirms Issuer Default Rating on four PSBs including SBI

Upgrades viability rating for IDBI Bank by a notch due mainly to improved core capitalisation and the high loan-loss coverage

Fitch Ratings today affirmed ratings on four public sector banks–-State Bank of India, Bank of Baroda, Punjab National Bank and Bank of India.

It affirmed Issuer Default Ratings (IDRs) at 'BBB-' for the lenders.

The rating agency has maintained negative outlook on ratings. It mirrors the Outlook on India's sovereign rating of 'BBB-', which was revised to Negative from Stable on June 18, 2020. The revision factored in the impact of the escalating coronavirus pandemic on India's economy.

The agency has also upgraded private lender IDBI Bank’s Viability Rating (VR) by one-notch from “ccc” to “ccc+”. The upgrade in VR