Seven PSU bank stocks fell by 0.23% to 3.73% at 12:09 IST after two international ratings agencies downgraded ratings of some banks on Monday, 23 September 2013.
Meanwhile, the BSE Sensex was up 17.25 points, or 0.09%, to 19,918.40
State Bank of India (SBI) (down 1.23%), Indian Bank (down 3.33%), Union Bank of India (down 1.12%), Andhra Bank (down 0.29%), Bank of India (down 3.73%), Bank of Baroda (down 0.47%) and Punjab National Bank (down 0.23%) declined. Canara Bank rose 0.49%.
Ratings agency Moody's on Monday, 23 September 2013 downgraded its outlook on State Bank of India (SBI)'s financial strength rating to 'negative' from 'stable'. Moody's also downgraded SBI's unsecured debt rating on par with the sovereign foreign currency bond rating. SBI's standalone credit profile continues to face negative pressures, and it will have to compete with other public sector lenders for capital injection from the government, Moody's said. SBI's impaired loan ratio of 8.6% at end-June is below the 11.5% average for Indian public sector banks rated by Moody's.
Meanwhile, ratings agency Fitch on Monday, 23 September 2013 downgraded some ratings for Indian Bank, Punjab National Bank and Bank of Baroda on expectations of a further deterioration in asset quality and a sharp deceleration on economic growth.
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