Bangkok--17 Dec--Moody's
Rating action triggered by the recent sovereign upgrade of India's deposit ceiling
Moody's Investors Service has today upgraded the long-term foreign currency (FC) deposit ratings of 14 Indian banks to Ba1 from Ba2, following Moody's recent upgrade of India's FC deposit ceiling. This rating action takes into account the fact that all Indian banks have a global local currency (GLC) deposit rating higher than Ba1, and thus their FC deposit ratings have been constrained by India's FC deposit ceiling.
The upgrade of the long-term foreign currency bank deposit ratings to Ba1 with stable outlook from Ba2 affects the following banks: Axis Bank Ltd, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Export-Import Bank of India, HDFC Bank Ltd, ICICI Bank Ltd, IDBI Bank Ltd, Oriental Bank of Commerce, Punjab National Bank, State Bank of India, Syndicate Bank and Union Bank of India. The other ratings assigned to these banks are unaffected by this rating action.
The last rating action for Export-Import Bank of India was taken on 29 March 2007, when Moody's rated Baa3 the bank's senior unsecured floating rate notes.
The last rating action for Central Bank of India, IDBI Bank Ltd, Oriental Bank of Commerce, Punjab National Bank and Syndicate Bank was taken on 21 October 2009, when their GLC deposit ratings were downgraded due to Moody's adjustment of the systemic support indicator for India.
The last rating action for Axis Bank Ltd, Bank of Baroda, Bank of India, Canara Bank, HDFC Bank Ltd, ICICI Bank Ltd, State Bank of India and Union Bank of India was taken on 18 November 2009, when their junior subordinated and hybrid Tier 1 ratings were placed on review for a possible downgrade due to Moody's change to its rating methodology for these instruments.
The principal methodologies used in rating these issuers are "Bank Financial Strength Ratings: Global Methodology", and "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology".
These can be found at www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website.
State Bank of India, headquartered in Mumbai, had assets of INR9,644 billion (US$184.8 billion) as of end-March 2009.
ICICI Bank Ltd, headquartered in Mumbai, had assets of INR3,793 billion (US$72.7 billion) as of end-March 2009.
Punjab National Bank, headquartered in New Delhi, had assets of INR2,469 billion (US$47.3 billion) as of end-March 2009.
Bank of Baroda, headquartered in Mumbai, had assets of INR2,274 billion (US$43.6 billion) as of end-March 2009.
Bank of India, headquartered in Mumbai, had assets of INR2,255 billion (US$43.2 billion) as of end-March 2009.
Canara Bank, headquartered in Bangalore, had assets of INR2,175 billion (US$41.7 billion) as of end-March 2009. HDFC Bank Ltd, headquartered in Mumbai, had assets of INR1,833 billion (US$35.1 billion) as of end-March 2009.
IDBI Bank Ltd, headquartered in Mumbai, had assets of INR1,724 billion (US$33 billion) as of end-March 2009.
Union Bank of India, headquartered in Mumbai, had assets of INR1,610 billion (US$30.9 billion) as of end-March 2009.
Axis Bank Ltd, headquartered in Mumbai, had assets of INR1,477 billion (US$28.3 billion) as of end-March 2009.
Central Bank of India, headquartered in Mumbai, had assets of INR1,338 billion (US$27.2 billion) as of end-December 2008.
Syndicate Bank, headquartered in Bangalore, had assets of INR1,303 billion (US$25 billion) as of end-March 2009.
Oriental Bank of Commerce, headquartered in New Delhi, had assets of INR1,126 billion (US$21.6 billion) as of end-March 2009.
Export-Import Bank of India, headquartered in Mumbai, had assets of INR442 billion (US$8.5 billion) as of end-March 2009.
Limassol
Mardig Haladjian
General Manager
Financial Institutions Group
Moody's Investors Service Cyprus Limited
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Limassol
Nondas Nicolaides
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Cyprus Limited
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454