Fitch slashes viability rating of Punjab National Bank to ‘BB+’

Global credit rating agency, Fitch has downgraded the viability rating of Punjab National Bank (PNB) from ‘BBB-’ to ‘BB+’, citing deteriorating asset quality and higher provisioning for stressed assets portfolios.

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.

Besides, the agency affirmed the LT IDRs of State Bank of India (SBI), Canara Bank, IDBI Bank, ICICI Bank and Axis Bank at ‘BBB-’. Fitch also affirmed the viability ratings of SBI, ICICI Bank and Axis Bank at ‘BBB-’, Canara Bank at ‘BB+’ and IDBI Bank at ‘BB’.