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Fitch lowers viability rating of Indian Bank to ‘BB+’

24 Sep 2013 Evaluate

Global rating agency Fitch has slashed viability rating of the Indian Bank by one notch to ‘BB+’ from ‘BBB-’, while the rating agency has lowered their long-term issuer default ratings  from ‘BBB-‘ to ‘BB+’.

The agency added that revenue growth was slowing due to lower loan growth and the margins were squeezed due to high funding costs, which had led to pressure on internal capital generation.

Indian Bank is a mid-sized government bank with over 1,860 branches across India, one branch in Singapore and two in Sri Lanka. It has a particularly strong presence in Tamil Nadu.

Peers
Company Name CMP
State Bank Of India 945.10
PNB 121.00
Bank Of Baroda 233.00
Canara Bank 118.20
Union Bank Of India 184.00
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