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CRISIL downgrades rating of Andhra Bank’s bonds programme

15 Jan 2014 Evaluate

Rating agency CRISIL has downgraded its rating on Andhra Bank’s Tier I perpetual bonds and upper Tier II bonds (under Basel II) to ‘AA/Stable’ from ‘AA+/Stable’. The company has received the rating downgrade on expectation that the bank’s asset quality will remain under pressure over the medium term due to macroeconomic factors.

The rating downgrade reflects the weakening of the bank’s earnings profile on account of deterioration in its asset quality.

Andhra Bank reported a fall of 78.30% in its net profit at Rs 70.65 crore for the quarter ended September 30, 2013 as compared to Rs 325.63 crore for the same quarter in the previous year. However, total income of the bank increased by 11.74% at Rs 3817.57 crore for quarter under review as compared to Rs 3416.55 crore for the quarter ended September 30, 2012.

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Company Name CMP
State Bank Of India 963.90
PNB 122.25
Bank Of Baroda 237.50
Canara Bank 120.05
Union Bank Of India 181.05
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