No impact of ownership change on debt-ridden IDBI Bank rating, says ICRA

Rating agency ICRA on Tuesday ruled out any change in ratings for ailing public sector lender IDBI Bank on grounds of change in ownership. Any change in rating will have to wait for improvement in standalone profile of the bank.

The acquisition of stake by Life Insurance Corporation of India (LIC), with equally strong ability to infuse capital, is unlikely to drive the credit profile in the near term.

The existing ratings factor is in the sovereign support. The government of India (GoI) is the promoter of the public sector lender. IDBI Bank is under Reserve Bank of India’s prompt corrective action