Fitch lowers viability rating of Indian Bank to ‘BB+’
Date: 24-09-2013Global 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.