Canara Bank has informed that ICRA has reaffirmed the long-term rating of [ICRA] AAA (hyb) (pronounced ICRA triple A hybrid) outstanding on the Rs 4,900 crore Basel-Ill compliant Tier-II bond programmes of the Bank. ICRA has also reaffirmed the long-term rating of [ICRA] AAA (pronounced ICRA triple A) outstanding on the Rs 2,000 crore Lower Tier-ll bonds and the [ICRA] AA (hyb) (pronounced ICRA double A hybrid) rating outstanding on the Rs 1,500 crore Basel-Ill compliant Additional Tier-I bonds of the bank. Further, ICRA has reaffirmed the short-term rating of [ICRA] A1+ (pronounced ICRA A one plus) rating outstanding on the Rs 50,000 crore Certificate of Deposits programme of the bank. The outlook on the long-term rating revised from stable to negative. The revision in the outlook factors in the deterioration in the bank’s asset quality indicators with gross NPA deteriorating to 5.8% as of Dec-15 from 4.3% as of Sep-15 and steep decline in profitability with net profitability declining to 0.06% in Q3FY2016 (0.5% in Q3FY2015), post the RBIs Asset Quality Review (AQR) directing banks to bring consistency in NPA recognition for stressed accounts and make provisions accordingly.
The above information is a part of company’s filings submitted to BSE.
