Crisil downgrades 8 Public Sector Banks

March 10, 2016 23:33

Credit rating agency Crisil today downgraded eight PSBs including Bank of India and Canara Bank, following deterioration in their asset quality and also revised the outlook on five of them to negative.

The agency also placed the rating on Syndicate Bank on negative watch list.

The state-run banks whose ratings have been downgraded are Bank of India, Central Bank of India, Corporation Bank, Dena Bank, IDBI Bank, Indian Overseas Bank, Syndicate Bank and Uco Bank. Those whose outlooks have revised down are Andhra Bank, BoB, Canara Bank, PNB and Punjab and Sind Bank, Crisil said in a report.

Significant stress in the corporate loan book of public sector banks (PSBs) is expected to result in their weak assets ballooning to Rs 7.1 trillion by March 2017 (11.3 per cent of total loan book) from around Rs 4 trillion as of March 2015 (7.2 per cent of loan book).

Steep rise in NPAs, expected further surge in stressed assets and the consequent hit on profitability and capital will dent credit profiles, Crisil said. The agency, however, said the ratings on 10 other Crisil-rated state-run banks have been reaffirmed wherein four of them carry a "negative" outlook.

« Back to LIVE

TOP STORIES

KL Rahul points to injuries for LSG's shortcomings

LSG skipper KL Rahul, whose team also finished out of play-off zone was disappointed.

No excuses: Hardik says MI deserved last place finish

'The whole season kind of went wrong. We can pass this game as another one (that went wrong)'

Scheffler charged with police officer assault before PGA Championship second round

In Pictures - LSG end season with dominant win; MI finish last

Scenes from the IPL match between the Mumbai Indians and the Lucknow Super Giants at the Wankhede stadium in Mumbai on Friday.

'We are not worried what Modiji says about Muslims'

While political experts claim that the Modi Magic is missing in the 2024 general election, the common people in the street -- at least those in the crowd on Thursday -- vow that they will vote for Modi and the candidate who contests the...