IDBI Bank remains on credit watch with negative implications, says S&P
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Global rating agency S&P Thursday said it's 'BB' long-term and 'B' short-term issuer credit ratings on state-run IDBI Bank continues to remain on credit watch with negative implications, due to uncertainty on the lender's ability to meet capital requiremeIDBI Bank remains on credit watch with negative implications, says S&P
Global rating agency S&P Thursday said it's 'BB' long-term and 'B' short-term issuer credit ratings on state-run IDBI Bank continues to remain on credit watch with negative implications, due to uncertainty on the lender's ability to meet capital requirements. The agency said the bank remains in breach of its regulatory capital requirements following a loss in the second quarter of the current fiscal. IDBI Bank's losses widened to Rs 3,602 crore in the quarter ended September, from Rs 198 crore in the year-ago quarter, on account of higher provisioning for bad loans and lower interest income. The lender's tier-1 capital ratio stood at 4.22 per cent, well below the minimum regulatory requirement of 7 per cent. «The continuing placement reflects the uncertainty regarding the bank's ability to meet its capital requirements in the near term,» the rating agency said. It, however, sees the the breach in capital requirement to be temporary. Life Insurance Corporation (LIC) Read more