International rating agency Standard & Poor’s has lowered its long-term foreign currency issuer credit rating on IDBI Bank to ‘BB’ from ‘BB+’ on expectation that the Bank’s asset quality to remain very weak over the next 12 months. Though, the rating agency has maintained a stable outlook for the lender.
IDBI Bank’s non-performing loans ratio rose sharply to 15.2 per cent in the December quarter from 10.9 per cent in March 2016. It reported a loss of Rs 3,660 crore in fiscal 2016 and Rs 1,960 crore in the first nine months of fiscal 2017.
