Singapore, July 24, 2017 -- Moody's Investors Service has affirmed the local and foreign currency
bank deposit ratings of seven Indian public sector banks (PSBs) at Baa3/Prime-3
The affected banks are: (1) Bank of Baroda (BOB), (2) Bank
of India (BOI), (3) Canara Bank (Canara), (4) Oriental Bank
of Commerce (OBC), (5) Punjab National Bank (PNB), (6) Syndicate
Bank (Syndicate) and (7) Union Bank of India (Union Bank). The
counterparty risk assessment (CRA) of these banks affirmed at Baa3(cr)/P-3(cr).
Moody's also downgraded the long term local and foreign currency bank
deposit ratings of Indian Overseas Bank (IOB) and Central Bank of India
(CBI) to Ba3 from Ba1. In addition, Moody's downgraded
IOB and Indian Overseas Bank, Hong Kong Branch's senior unsecured
medium-term note (MTN) program rating to (P)Ba3 from (P)Ba1 and
IOB's Hong Kong branch's senior unsecured debt rating to Ba3
from Ba1. The long term CRA of these banks has also been downgraded
to Ba2(cr) from Ba1(cr).
Moody's also downgraded the standalone credit profile or the baseline
credit assessment (BCA) of Syndicate to ba3 from ba2, and as a result,
downgraded the subordinated MTN and junior subordinated MTN program ratings
of the bank to (P)Ba3 and (P)B1 from (P)Ba2 and (P)Ba3, respectively.
Moody's changed the outlook to stable from positive for BOB and
its London branch, Canara and its London branch, PNB,
and Syndicate and its London branch, changed the outlook to negative
from positive for BOI and its London branch and Jersey branch, OBC,
and Union Bank and its Hong Kong branch, and changed the outlook
to stable from negative for IOB and its Hong Kong branch. Outlook
for CBI was maintained at stable.
The list of affected ratings is provided at the end of this press release.
The ratings of State Bank of India (SBI, Baa3 positive, ba1)
and IDBI Bank Ltd (IDBI, Ba2 ratings under review, caa1) are
not affected by this rating action.
RATINGS RATIONALE
MODERATION IN THE LEVEL OF GOVERNMENT SUPPORT FACTORED INTO BANKS'
RATINGS
Moody's uses the joint default analysis (JDA) model to determine
government support for banks. Under JDA, Moody's places
each bank in a support bucket, which can be "very high",
"high", "moderate", or "low".
As a function of a government's sovereign credit rating and a bank's
designated support bucket, JDA provides a range of potential notches
of support.
Until this rating action, Moody's support assumptions were
generally at the maximum of the "very high" support bucket
range. With this rating action, Moody's has repositioned
the support assumption towards the mid-point of the "very
high" support bucket range. This means that typically the
maximum rating uplift above the BCA is three notches.
Indian PSBs have experienced significant asset quality problems and capital
shortages over the last three years. In 2015, the government
announced its "Indradhanush" plan to address its own estimate
of INR 1,800 billion shortfall in capital that PSBs would need between
2015 to 2019 to meet Basel III requirements. Under this plan,
the government would allocate INR700billion for capital injections to
public sector banks over the financial years ending in March 2016 to March
2019, with the expectation that banks could access the equity capital
market for additional capital.
Despite receiving INR 500 billion in capital injections under the Indradhanush
plan, PSBs remain undercapitalized and burdened by bad debts.
The Indradhanush plan will only provide INR200bn of additional capital
in the two financial years up to March 2019, which falls short of
the amount still required for banks to address solvency challenges and
recapitalize themselves. The government has not increased its planned
capital injections, although most public sector banks have not been
able to raise the required capital from the equity capital markets.
Other policies seem to indicate a gradual shift in approach. The
introduction of the Financial Resolution and Deposit Insurance Bill,
2017, indicates the government's preference to introduce more
market discipline in the resolution of financial institutions.
A stated intention of the resolution framework is to limit the use of
public money to bail out distressed entities.
These actions suggest that the extent of support that the government would
provide to some banks is likely lower than what we had previously assumed.
As a result, banks benefiting from the very highest levels of support
are likely to see less support over time.
Nevertheless, Moody's continues to position the rated public
sector banks in the "very high" support bucket, reflecting
the systemic importance of public sector banks in India. The government
owns a majority stake in these banks and is visibly involved in their
management, including appointment of senior managers and setting
of key performance indicators. In addition, the viability
of public sector banks is crucial for maintaining overall systemic stability,
given that these banks cumulatively account for around 74% of the
banking system assets.
STABLE BUT WEAK BCAs; NEGATIVE PRESSURE FOR SOME BANKs
Moody's expect asset quality to remain the key credit weakness for
the rated PSBs. Net non-performing loan (NPL) formation
rates, while moderating compared to the levels seen in the last
two years, will remain elevated on an absolute basis.
At the same time, the need to improve loan loss provisioning levels
will require banks to maintain a high level of credit costs, leading
to low profitability over the next 12-18 months.
Capital levels will remain weak for most rated PSBs over the next 12-18
months, as low profitability impinges on their ability to build
capital levels through retained earnings. We expect the government
to remain the key source of external capital for these banks.
Nevertheless, because their current BCA's incorporate considerations
for solvency weakness described above, Moody's has affirmed
the BCA's for eight banks. Despite weaker asset quality and
capital metrics, the BCAs of rated public sector banks benefit from
sound funding and liquidity metrics, with the liquidity coverage
ratio (LCR) of all rated public sector banks at or above 100%.
At the same time, the BCAs of three banks remain weak and could
face further downward pressure. The position of the BCAs at the
top of the range indicates potential for a further deterioration to lead
to a downward BCA adjustment. At the same time, Moody's
has downgraded the BCA of Syndicate to ba3 from ba2.
DISCUSSIONS ON INDIVIDUAL BANK RATING ACTIONS
Bank of Baroda and Bank of Baroda (London)
Moody's has affirmed BOB's local and foreign currency bank deposit
ratings at Baa3/Prime-3. Moody's has also affirmed Bank
of Baroda (London) 's senior unsecured debt and senior unsecured medium-term
note (MTN) program ratings at Baa3 and (P)Baa3. At the same time,
Moody's has affirmed the bank's BCA and Adjusted BCA at ba2. Moody's
has also affirmed the CRA of Baa3(cr)/Prime-3(cr) for both the
bank and London Branch. The outlook, where applicable,
has been revised to stable from positive.
The affirmation of BOB's BCA and ratings reflects our expectation
that the financial profile will broadly remain stable over the next 12-18
months. Asset quality has largely stabilized and new NPL formation
has moderated in the financial year ended March 2017 (FY 2017).
New NPL formation has meaningfully declined in FY 2017 and we expect further
improvements in the next financial year. BOB's capitalization
profile is also somewhat stronger than that of its peers and we expect
the bank may be able to raise external capital from the equity capital
market if its financial profile stabilizes further. In addition,
we expect improvement in the profitability profile as credit costs will
gradually come down given the relatively stronger loan loss coverage and
our expectation of a stable asset quality. We expect funding and
liquid profile to remain stable and support the overall financial profile.
The outlook on the bank's ratings has been revised to stable from
positive to reflect some moderation in our expectation of extra ordinary
support from the Indian government given the issues outlined earlier in
this press release.
What could change the rating up:
Given the stable outlook, BOB's ratings are unlikely to face
upward pressure in the next 12-18 months. However,
the outlook could be revised to positive if the bank is able to improve
its profitability profile on a sustainable basis, and or if the
bank's capital position is significantly strengthened by way of external
capital.
What could change the rating down:
Downward pressure on BOB's rating will arise if further credit losses
worsen its capital position. Any indication that government support
has diminished beyond what we anticipate in this rating action could also
lead to a downgrade of the bank's ratings.
Bank of India; Bank of India (London) and Bank of India, Jersey
Branch
Moody's has affirmed BOI's local and foreign currency bank
deposit ratings at Baa3/Prime-3. Moody's has also affirmed
the bank and its branches, Bank of India (London) and Bank of India,
Jersey Branch's foreign currency senior unsecured medium-term
note (MTN) program rating at (P)Baa3. For the London and Jersey
branches, Moody's has affirmed the foreign currency senior
unsecured debt ratings at Baa3. The outlook, where applicable,
has been revised to negative from positive.
At the same time, Moody's affirmed the bank's BCA and Adjusted
BCA at ba3. As a result, Moody's affirmed the bank
and the London and Jersey branch's subordinate MTN program rating
at (P)Ba3. In addition, Moody's has affirmed the bank's
preferred stock (non-cumulative) rating of B3(hyb). For
the Jersey branch, Moody's has also affirmed the foreign currency
junior subordinate MTN program rating at (P)B1.Moody's has affirmed
the bank and its branches' CRA at Baa3(cr)/ P-3(cr).
The affirmation of the bank's ratings with a negative outlook reflects
the negative pressures on the BCA in light of the recent deterioration
in asset quality as well as expectation of pressure on the bank's
profitability as it continues to build its loan loss buffers. Nevertheless,
we note that loan loss provisioning coverage is somewhat better than that
of its peers and as such the negative impact on profitability may be limited
as the underlying asset quality stabilizes. In addition,
the bank's capitalization profile is somewhat weaker and the ability
to generate internal capital is limited. As such, we expect
BOI will be dependent on capital infusion from the Indian government.
Nevertheless, we expect funding and liquid profile to remain stable
and support the overall financial profile.
The negative outlook on BOI's ratings also reflects some moderation
in our expectation of extra ordinary support from the Indian government
given the issues outlined earlier in this press release. As such,
BOI's BCA and ratings could be downgraded during the outlook horizon
to reflect these factors.
What could change the rating up:
Given the negative outlook, BOI's ratings are unlikely to
face upward pressure in the next 12-18 months. However,
the outlook could be revised to stable if the bank returns to profitability
on a sustainable basis, and or the capital position is significantly
strengthened by way of external capital.
What could change the rating down:
BOI's ratings could be downgraded if further credit losses worsen
its capital position. Any indication that government support has
diminished beyond what we anticipate in this rating action could also
lead to a downgrade of the bank's ratings.
Canara Bank and Canara Bank, London Branch
Moody's has affirmed Canara's local and foreign currency bank deposit
ratings at Baa3/Prime-3. Moody's has also affirmed Canara
Bank, London Branch's senior unsecured debt and senior unsecured
medium-term note (MTN) program ratings at Baa3/(P)Baa3.
The outlook, where applicable, has been revised to stable
from positive.
At the same time, Moody's has affirmed the bank's BCA and Adjusted
BCA at ba3. As a result, Moody's affirmed the London
branch's foreign currency subordinated and junior subordinate MTN
program ratings at (P)Ba3 and (P)B1 respectively. Moody's has also
affirmed the CRA of Baa3(cr)/Prime-3(cr) for both the bank and
London Branch.
The affirmation of the Canara's BCA and ratings reflects our expectation
that the bank's financial profile will broadly remain stable over
the next 12-18 months. Asset quality has largely stabilized
and new NPL formation has moderated in the financial year ended March
2017. Given the amount of recognition done over the last 2-3
years, we expect the pace of new NPL formation to gradually slow
down. While the capitalization profile of the bank has improved,
it is weaker than global peers and as such we expect the bank to remain
dependent on capital infusion from the Indian government. In addition,
profitability profile will remain under pressure as it continues to builds
provisioning buffer. Nevertheless, we expect the bank's funding
and liquid profile to remain stable and support the overall financial
profile.
The outlook on the bank's ratings has been revised to stable from
positive to reflect some moderation in our expectation of extra ordinary
support from the Indian government given the issues outlined earlier in
this press release.
What could change the rating up:
Given the stable outlook, Canara's ratings are unlikely to
face upward pressure in the next 12-18 months. However,
the outlook could be revised to positive if the bank is able to improve
its profitability profile on a sustainable basis, and or capital
position is significantly strengthened by way of external capital.
What could change the rating down:
Downward pressure on Canara's rating will arise if further credit
losses worsen its capital position. Any indication that government
support has diminished beyond what we anticipate in this rating action
could also lead to a downgrade of the bank's ratings.
Central Bank of India
Moody's has downgraded CBI's long term local and foreign currency
bank deposit ratings to Ba3 from Ba1. At the same time, Moody's
has affirmed the bank's BCA and Adjusted BCA at b3. Moody's has
also downgraded the bank's long term CRA to Ba2(cr) from Ba1(cr).
The short-term local and foreign currency bank deposit rating was
affirmed at Not-Prime and the banks' short-term CRA
was affirmed at Not-Prime(cr). The outlook, where
applicable, is maintained at stable.
The downgrade of CBI's long-term deposit ratings reflect
the banks's weak BCA of b3 and some moderation in our expectation of extra
ordinary support from the Indian government given the issues outlined
earlier in this press release. As such, the uplift from the
BCA has been lowered to three notches compared to the earlier five notches.
At the same time, the affirmation of the BCA at b3 reflects our
expectation that CBI's financial profile will broadly remain stable,
although very weak, over the next 12-18 months. Asset
quality has largely stabilized and new NPL formation has moderated in
the financial year ended March 2017. Given the amount of recognition
done over the last 2-3 years, we expect the pace of new NPL
formation to gradually slow down. While the capitalization profile
of the bank has improved, continued losses will exert pressure on
the capital levels. Despite severe pressure on its solvency profile,
the bank's funding and liquidity have remained stable and support the
overall financial profile. We note that the bank has been placed
under prompt corrective action by the Reserve Bank of India (RBI).
As such, we expect greater regulatory scrutiny by the RBI,
but that should not negatively impact the CBI's performance.
What could change the rating up:
Given the stable outlook, CBI's ratings are unlikely to face
upward pressure in the next 12-18 months. However,
the outlook could be revised to positive if the bank returns to profitability
on a sustainable basis, and or the capital position is significantly
strengthened by way of external capital.
What could change the rating down:
Downward pressure on CBI's rating will arise if further credit losses
worsen its capital position. Any indication that government support
has diminished beyond what we anticipate in this rating action could also
lead to a downgrade of the bank's ratings.
Indian Overseas Bank and Indian Overseas Bank, Hong Kong Branch
Moody's has downgraded IOB's long term local and foreign currency
bank deposit ratings to Ba3 from Ba1. Moody's has affirmed
IOB's short term foreign currency bank deposit ratings at Not Prime.
Moody's has also affirmed the bank and its branch, Indian
Overseas Bank, Hong Kong Branch's other short term program
rating at (P)Not Prime. Moody's has downgraded the bank and its
branch's senior unsecured medium-term note (MTN) program rating
to (P)Ba3 from (P)Ba1. Moody's has also downgraded the branch's
senior unsecured debt rating to Ba3 from Ba1. The outlook,
where applicable, has been revised to stable from negative.
At the same time, Moody's affirmed the bank's BCA and Adjusted
BCA at b3. As a result, Moody's affirmed the bank and
the Hong Kong branch's subordinate and junior subordinate MTN program
rating at (P)B3 and (P)Caa1 respectively. Moody's has downgraded
the bank and its branch's long term CRA to Ba2(cr) from Ba1(cr).
The short-term CRA was affirmed at NP(cr).
The downgrade of IOB's ratings reflect the bank's weak BCA of b3
and some moderation in our expectation of extra ordinary support from
the Indian government given the issues outlined earlier in this press
release. As such, the uplift from the BCA has been downgraded
to three notches compared to the earlier five notches.
At the same time, the affirmation of the bank's BCA at b3
reflects our expectation that IOB's financial profile will broadly
remain stable, although very weak, over the next 12-18
months. Asset quality has largely stabilized and new NPL formation
has moderated in the financial year ended March 2017. Given the
amount of recognition done over the last 2-3 years, we expect
the pace of new NPL formation to gradually slow down. While the
capitalization profile of the bank has improved, continued losses
will exert pressure on the capital levels. As such we expect the
bank to remain dependent on capital infusion from the Indian government.
Despite severe pressure on its solvency profile, the bank's funding
and liquidity have remained stable and support the overall financial profile.
We note that the bank has been placed under prompt corrective action by
the RBI. As such, we expect greater regulatory scrutiny by
the RBI, but that should not negatively impact IOB's performance.
What could change the rating up:
Given the stable outlook, IOB's ratings are unlikely to face
upward pressure in the next 12-18 months. However,
the outlook could be revised to positive if the bank returns to profitability
on a sustainable basis, and or the capital position is significantly
strengthened by way of external capital.
What could change the rating down:
IOB's ratings could be downgraded if further credit losses worsen
its capital position. Any indication that government support has
diminished beyond what we anticipate in this rating action could also
lead to a downgrade of the bank's ratings.
Oriental Bank of Commerce
Moody's has affirmed OBC's local and foreign currency bank deposit
ratings at Baa3/Prime-3. At the same time, Moody's
has affirmed the bank's BCA and Adjusted BCA at ba3. Moody's has
also affirmed the bank's CRA at Baa3(cr)/ Prime-3(cr).
The outlook, where applicable, has been changed to negative
from positive.
The affirmation of OBC's ratings with a negative outlook reflects
the negative pressures on the BCA in light of the recent deterioration
in asset quality as well as expectation of pressure on profitability as
it continues to build its loan loss buffers. Nevertheless,
we expect the bank's funding and liquidity profile to remain stable and
support the overall financial profile.
The negative outlook on the bank's ratings also reflects some moderation
in our expectation of extra ordinary support from the Indian government
given the issues outlined earlier in this press release. As such,
the bank's BCA and ratings could be downgraded during the outlook horizon
to reflect these factors.
What could change the rating up:
Given the negative outlook, OBC's ratings are unlikely to
face upward pressure in the next 12-18 months. However,
the outlook could be revised to stable if the bank returns to profitability
on a sustainable basis, and or the capital position is significantly
strengthened by way of external capital.
What could change the rating down:
OBC's ratings could be downgraded if further credit losses worsen
its capital position. Any indication that government support has
diminished beyond what we anticipate in this rating action could also
lead to a downgrade of the bank's ratings.
Punjab National Bank
Moody's has affirmed PNB's local and foreign currency bank deposit
ratings at Baa3/Prime-3. Moody's has also affirmed
the bank's foreign currency issuer rating at Baa3. At the
same time, Moody's has affirmed the bank's BCA and Adjusted BCA
at ba3. Moody's has also affirmed the bank's CRA at Baa3(cr)/
Prime-3(cr). The outlook, where applicable,
has been changed to stable from positive.
The affirmation of the PNB's BCA and ratings reflects our expectation
that the bank's financial profile will broadly remain stable over
the next 12-18 months. Asset quality has largely stabilized
and new NPL formation has moderated in the financial year ended March
2017. Given the amount of recognition done over the last 2-3
years, we expect the pace of new NPL formation to gradually slow
down. The capitalization profile of the bank is weaker than global
peers, nevertheless we note that the bank has potential to release
capital from the sale of non-core assets such as its housing finance
subsidiary. Nevertheless, given weak equity market valuation,
we expect the bank will remain dependent on capital infusion from the
Indian government. In addition, the bank's profitability
profile will gradually improve given the strong pre-provisioning
profits and some moderation in credit costs compared to the past two years
in line with our view of stable asset quality. The banks funding
and liquidity profile remain stable and are key strengths of its financial
profile.
The outlook on the bank's ratings has been revised to stable from
positive. This reflects some moderation in our expectation of extra
ordinary support from the Indian government given the issues outlined
earlier in this press release.
What could change the rating up:
Given the stable outlook, PNB's ratings are unlikely to face
upward pressure in the next 12-18 months. However,
the outlook could be revised to positive if the bank is able to improve
its profitability profile on a sustainable basis, and or the capital
position is significantly strengthened by way of external capital.
What could change the rating down:
Downward pressure on PNB's rating will arise if further credit losses
worsen its capital position. Any indications that government support
has diminished beyond what we anticipate in this rating action could also
lead to a downgrade of the bank's ratings.
Syndicate Bank and Syndicate Bank, London Branch
Moody's has affirmed Syndicate Bank's (Syndicate) local and foreign
currency bank deposit ratings at Baa3/Prime-3. Moody's has
also affirmed the bank and its branch's senior unsecured medium-term
note (MTN) program rating at (P)Baa3. Moody's has also affirmed
the branch's senior unsecured debt rating at Baa3. The outlook,
where applicable, has been revised to stable from positive.
At the same time, Moody's has downgraded the bank's BCA and
Adjusted BCA to ba3 from ba2. As a result, Moody's
has also downgraded the bank and the London branch's subordinate
and junior subordinate MTN program rating to (P)Ba3 from (P)Ba2 and to
(P)B1 from (P)Ba3 respectively. Moody's has affirmed the bank and
its branch's CRA at Baa3(cr)/ Prime-3(cr).
The downgrade of the BCA reflects the deterioration in Syndicate's financial
performance due to asset quality deterioration as well as expectation
of pressure on the profitability profile as it continues to build its
loan loss buffers. In addition, the bank's capitalization
profile is somewhat weaker than other similarly rated peers and its ability
to generate internal capital is limited. As such, we expect
the bank will be dependent on capital infusion from the Indian government.
Nevertheless, we expect funding and liquid profile to remain stable
and support the overall financial profile.
What could change the rating up:
Given the stable outlook, Syndicate's ratings are unlikely
to face upward pressure in the next 12-18 months. However,
the outlook could be revised to positive if the bank is able to improve
its profitability profile on a sustainable basis, and or the capital
position is significantly strengthened by way of external capital.
What could change the rating down:
Downward pressure on Syndicate's rating will arise if further credit
losses worsen its capital position. Any indications that government
support has diminished beyond what we anticipate in this rating action
could also lead to a downgrade of the bank's ratings.
Union Bank of India and Union Bank of India, Hong Kong Branch
Moody's has affirmed Union Bank of India's (Union Bank) local and
foreign currency bank deposit ratings at Baa3/Prime-3. Moody's
has also affirmed the bank and its branch's senior unsecured medium-term
note (MTN) program rating at (P)Baa3. Moody's has also affirmed
the branch's senior unsecured debt rating at Baa3. The outlook,
where applicable, has been revised to negative from positive.
At the same time, Moody's has affirmed the bank's BCA and Adjusted
BCA at ba3. As a result, Moody's has also affirmed
the bank and the Hong Kong branch's subordinate and junior subordinate
MTN program rating at (P)Ba3 and (P)B1. Moody's has affirmed the
bank and its Hong Kong branch's CRA at Baa3(cr)/ Prime-3(cr).
The affirmation of the banks' ratings with a negative outlook reflects
negative pressures on the BCA in light of the recent deterioration in
asset quality as well as expectation of pressure on profitability profile
as it continues to build its loan loss buffers. In addition,
Union Bank's capitalization profile is weaker than other rated peers in
India. Nevertheless, we expect funding and liquid profile
to remain stable and support the overall financial profile.
The negative outlook on the bank's ratings also reflects some moderation
in our expectation of extra ordinary support from the Indian government
given the issues outlined earlier in this press release. As such,
Union banks' BCA and ratings could be downgraded during the outlook
horizon to reflect these factors.
What could change the rating up:
Given the negative outlook, Union Banks' ratings are unlikely
to face upward pressure in the next 12-18 months. However,
the outlook could be revised to stable if the bank returns to profitability
on a sustainable basis, or if the banks' capital position
is significantly strengthened by way of external capital.
What could change the rating down:
Union Bank's ratings could be lowered if further credit losses worsen
its capital position. Any indication that government support has
diminished beyond what we anticipate in this rating action could also
lead to a downgrade of the bank's ratings.
The principal methodology used in these ratings was Banks published in
January 2016. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
The ratings and outlook of the affected financial institutions are listed
below.
Bank of Baroda (Lead Analyst: Srikanth Vadlamani)
Long-term local and foreign currency bank deposit ratings affirmed
at Baa3; outlook changed to stable from positive
Short-term local and foreign currency bank deposit ratings affirmed
at P-3
BCA and Adjusted BCA affirmed at ba2
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the bank revised to stable from positive
Bank of Baroda, headquartered in Baroda(Gujarat) and corporate office
in Mumbai, reported total consolidated assets of INR 7,192
billion ($111 billion) as of 31 March 2017.
Bank of Baroda (London) (Lead Analyst: Srikanth Vadlamani)
Foreign currency senior unsecured debt rating affirmed at Baa3; outlook
changed to stable from positive
Foreign currency senior unsecured MTN program rating affirmed at (P)Baa3
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the branch revised to stable from positive
Bank of India (Lead Analyst: Srikanth Vadlamani)
Long-term local and foreign currency bank deposit ratings affirmed
at Baa3; outlook changed to negative from positive
Short-term local and foreign currency bank deposit ratings affirmed
at P-3
Foreign currency senior unsecured MTN program rating affirmed at (P)Baa3
Foreign currency subordinated MTN program rating affirmed at (P)Ba3
Pref. stock (non-cumulative) rating affirmed at B3(hyb)
BCA and Adjusted BCA affirmed at ba3
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the bank revised to negative from positive
Bank of India, headquartered in Mumbai, reported total consolidated
assets of INR 6,320 billion ($98 billion) as of 31 March
2017.
Bank of India (London) (Lead Analyst: Srikanth Vadlamani)
Foreign currency senior unsecured debt rating affirmed at Baa3; outlook
changed to negative from positive
Foreign currency senior unsecured MTN program rating affirmed at (P)Baa3
Foreign currency subordinated MTN program rating affirmed at (P)Ba3
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the branch revised to negative from positive
Bank of India, Jersey Branch (Lead Analyst: Srikanth Vadlamani)
Foreign currency senior unsecured debt rating affirmed at Baa3; outlook
changed to negative from positive
Foreign currency senior unsecured MTN program rating affirmed at (P)Baa3
Foreign currency subordinated MTN program rating affirmed at (P)Ba3
Foreign currency junior subordinate MTN program rating affirmed at (P)B1
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the branch revised to negative from positive
Canara Bank (Lead Analyst: Alka Anbarasu)
Long-term local and foreign currency bank deposit ratings affirmed
at Baa3; outlook changed to stable from positive
Short-term local and foreign currency bank deposit ratings affirmed
at P-3
BCA and Adjusted BCA affirmed at ba3
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the bank revised to stable from positive
Canara Bank, headquartered in Bangalore, reported total consolidated
assets of INR 5,962 billion ($92 billion) as of 31 March
2017.
Canara Bank, London Branch (Lead Analyst: Alka Anbarasu)
Foreign currency senior unsecured debt rating affirmed at Baa3; outlook
changed to stable from positive
Foreign currency senior unsecured MTN program rating affirmed at (P)Baa3
Foreign currency subordinated MTN program rating affirmed at (P)Ba3
Foreign currency junior subordinate MTN program rating affirmed at (P)B1
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the branch revised to stable from positive
Central Bank of India (Lead Analyst: Alka Anbarasu)
Long-term local and foreign currency bank deposit ratings downgraded
to Ba3 from Ba1; outlook maintained at stable
Short-term local and foreign currency bank deposit ratings affirmed
at NP;
BCA and Adjusted Baseline Credit Assessment affirmed at b3
Long-term CRA downgraded to Ba2(cr) from Ba1(cr)
Short-term CRA affirmed at NP(cr)
Outlook for the bank maintained at stable
Central Bank of India, headquartered in Mumbai, reported total
consolidated assets of INR 3,347 billion ($52 billion) as
of 31 March 2017.
Indian Overseas Bank (Lead Analyst: Alka Anbarasu)
Long-term local and foreign currency bank deposit ratings downgraded
to Ba3 from Ba1; outlook changed to stable from negative
Short-term foreign currency bank deposit ratings affirmed at NP
Foreign currency other short term program rating affirmed at (P)NP
Foreign currency senior unsecured MTN program rating was downgraded to
(P)Ba3 from (P)Ba1
Foreign currency subordinate MTN program rating affirmed at (P)B3
Foreign currency junior subordinate MTN program rating affirmed at (P)Caa1
BCA and Adjusted BCA affirmed at b3
Long-term CRA downgraded to Ba2(cr)) from Ba1(cr)
Short-term CRA affirmed at NP(cr)
Outlook for the bank changed to stable from negative
Indian Overseas Bank, headquartered in Chennai, reported total
consolidated assets of INR 2,472 billion ($38 billion) as
of 31 March 2017.
Indian Overseas Bank, Hong Kong branch (Lead Analyst: Alka
Anbarasu)
Foreign currency other short term program rating affirmed at (P)NP
Foreign currency senior unsecured debt rating downgraded to Ba3 from Ba1,
outlook changed to stable from negative
Foreign currency senior unsecured MTN program rating downgraded to (P)Ba3
from (P)Ba1
Foreign currency subordinate MTN program rating affirmed at (P)B3
Foreign currency junior subordinate MTN program rating affirmed at (P)Caa1
Long-term CRA downgraded to Ba2(cr) from Ba1(cr)
Short-term CRA affirmed at NP(cr)
Outlook for the bank changed to stable from negative
Oriental Bank of Commerce (Lead Analyst: Srikanth Vadlamani)
Long-term local and foreign currency bank deposit ratings affirmed
at Baa3; outlook changed to negative from positive
Short-term local and foreign currency bank deposit ratings affirmed
at P-3
BCA and Adjusted BCA affirmed at ba3
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the bank revised to negative from positive
Oriental Bank of Commerce, headquartered in New Delhi, reported
total consolidated assets of INR 2,531 billion ($39 billion)
as of 31 March 2017.
Punjab National Bank (Lead Analyst: Alka Anbarasu)
Long-term local and foreign currency bank deposit ratings affirmed
at Baa3; outlook changed to stable from positive
Short-term local and foreign currency bank deposit ratings affirmed
at P-3
Foreign currency issuer rating affirmed at Baa3; outlook changed
to stable from positive
BCA and Adjusted BCA affirmed at ba3
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the bank revised to stable from positive
Punjab National Bank, headquartered in New Delhi, reported
total consolidated assets of INR 7,333 billion ($113 billion)
as of 31 March 2017.
Syndicate Bank (Lead Analyst: Srikanth Vadlamani)
Long-term local and foreign currency bank deposit ratings affirmed
at Baa3; outlook changed to stable from positive
Short-term local and foreign currency bank deposit ratings affirmed
at P-3
Foreign currency senior unsecured MTN program rating affirmed at (P)Baa3
Foreign currency subordinated MTN program rating downgraded to (P)Ba3
from (P)Ba2
Foreign currency junior subordinate MTN program rating downgraded to (P)B1
from (P)Ba3
BCA and Adjusted BCA downgraded to ba3 from ba2
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the bank revised to stable from positive
Syndicate Bank, headquartered in Bangalore, reported total
consolidated assets of INR 3,006 billion ($46 billion) as
of 31 March 2017.
Syndicate Bank, London Branch (Lead Analyst: Srikanth Vadlamani)
Foreign currency senior unsecured debt rating affirmed at Baa3; outlook
changed to stable from positive
Foreign currency senior unsecured MTN program rating affirmed at (P)Baa3
Foreign currency subordinated MTN program rating downgraded to (P)Ba3
from (P)Ba2
Foreign currency junior subordinate MTN program rating downgraded to (P)B1
from (P)Ba3
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the branch revised to stable from positive
Union Bank of India (Lead Analyst: Alka Anbarasu)
Long-term local and foreign currency bank deposit ratings affirmed
at Baa3; outlook changed to negative from positive
Short-term local and foreign currency bank deposit ratings affirmed
at P-3
Foreign currency senior unsecured MTN program rating affirmed at (P)Baa3
Foreign currency subordinated MTN program rating affirmed at (P)Ba3
Foreign currency junior subordinate MTN program rating affirmed at (P)B1
BCA and Adjusted BCA affirmed at ba3
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the bank revised to negative from positive
Union Bank of India, headquartered in Mumbai, reported total
consolidated assets of INR 4,557 billion ($70 billion) as
of 31 March 2017.
Union Bank of India, Hong Kong Branch (Lead Analyst: Alka
Anbarasu)
Foreign currency senior unsecured debt rating affirmed at Baa3; outlook
changed to negative from positive
Foreign currency senior unsecured MTN program rating affirmed at (P)Baa3
Foreign currency subordinated MTN program rating affirmed at (P)Ba3
Foreign currency junior subordinate MTN program rating affirmed at (P)B1
CRA affirmed at Baa3(cr)/P-3(cr)
Outlook for the branch revised to negative from positive
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead rating analyst and the Moody's legal entity that has issued
the ratings.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Srikanth Vadlamani
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
Gene Fang
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
Releasing Office:
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
