{"id":1829,"date":"2020-06-22T14:13:02","date_gmt":"2020-06-22T14:13:02","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=1829"},"modified":"2020-06-22T14:13:02","modified_gmt":"2020-06-22T14:13:02","slug":"sbi-pnb-rating-outlook-cut-fitchs-axe-falls-on-9-psu-private-banks-after-indias-rating-outlook-cut","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=1829","title":{"rendered":"SBI, PNB rating outlook cut; Fitch\u2019s axe falls on 9 PSU, private banks after India\u2019s rating outlook cut"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-1997433 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/1-364.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-1997433 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/1-364.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1997433 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/1-364.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/06\/1-364.jpg 660w, https:\/\/images.financialexpress.com\/2020\/06\/1-364-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/06\/1-364-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/06\/1-364-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/06\/1-364-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/06\/1-364-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/06\/1-364-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">Fitch said that all the banks are support-driven and anchored to their respective sovereign country rating.<\/span><\/figure>\n<\/div>\n<p><span style=\"font-weight: 400;\">Fitch has cut the credit rating outlook on India\u2019s nine PSU and private banks including <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/state-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">SBI<\/a>, <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/punjab-national-bank-stock-price\/\" rel=\"noopener noreferrer\">PNB<\/a> and <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/icici-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">ICICI Bank<\/a> from \u201cstable\u201d to \u201cnegative\u201d after the recent cut in India\u2019s sovereign credit rating outlook. Fitch said that all the banks are support-driven and anchored to their respective sovereign country rating. Other than <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/state-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">State Bank of India<\/a> and ICICI Bank, other lenders are EXIM Bank, <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/bank-of-baroda-stock-price\/\" rel=\"noopener noreferrer\">Bank of Baroda<\/a>, Bank of Baroda, Bank of India, <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/canara-bank-stock-price\/\" rel=\"noopener noreferrer\">Canara Bank<\/a>, <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/punjab-national-bank-stock-price\/\" rel=\"noopener noreferrer\">Punjab National Bank<\/a> and <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/axis-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">Axis Bank<\/a>. \u201cThey are based on Fitch\u2019s assessment of high to moderate probability of extraordinary state support for these banks, which takes into account our assessment of the sovereign\u2019s ability and propensity to provide extraordinary support,\u201d it said in a statement on Sunday. However, the banks\u2019 issuer default ratings, support ratings and support rating floors have been affirmed at their respective current levels.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">State Bank of India has been assigned issuer default rating of \u201cBBB-\u201c. This reflects the rating agency\u2019s expectation that the lender is highly likely to receive extraordinary state support, if required, as it holds high systemic importance. \u201cSBI is the largest <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/indian-bank-stock-price\/\" rel=\"noopener noreferrer\">Indian bank<\/a> with nearly 25% market share in system assets and deposits, it is 57.9% state-owned and has a much broader policy role than peers,\u201d the agency said. On the other hand, ICICI Bank and Axis Bank have been assigned ratings of \u201cBB+\u201d each as the rating agency expects \u201ca moderate probability of extraordinary state support for these banks, due to their systemic importance, market position and private ownership\u201d. However, while there is a possibility that these two private banks will get extraordinary state support, the probability is lower compared to large state banks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The coronavirus pandemic has caused the downgrade in India\u2019s sovereign ratings as the government is under increasing pressure to provide support due to limited fiscal space and the significant deterioration in fiscal metrics. The agency had earlier downgraded India outlook to \u201cnegative\u201d from \u201cstable\u201d as coronavirus continues to take toll on the country\u2019s economy.<\/span><\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/sbi-pnb-rating-outlook-cut-fitchs-axe-falls-on-9-psu-private-banks-after-indias-rating-outlook-cut\/1999798\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fitch said that all the banks are support-driven and anchored to their respective sovereign country rating. Fitch has cut the credit rating outlook on India\u2019s nine PSU and private banks including SBI, PNB and ICICI Bank from \u201cstable\u201d to \u201cnegative\u201d after the recent cut in India\u2019s sovereign credit rating outlook. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1830,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-1829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/06\/fitch.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/1829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1829"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/1829\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/1830"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}