For Quick Alerts
For Daily Alerts

IOB, OBC, Syndicate Bank fall on Moody's rating cut


IOB, OBC, Syndicate Bank fall on Moody's rating cut
Indian Overseas Bank: Quotes, News
BSE 7.20BSE Quote0.2 (-2.78%)
NSE 7.20NSE Quote0.2 (-2.78%)
Shares in Indian Overseas Bank, Syndicate Bank and Oriental Bank of Commerce fell after Moody's downgraded its Standalone Bank Financial Strength Rating (BFSR) for three public sector banks - Indian Overseas Bank, Syndicate Bank and Oriental Bank of Commerce.

Shares in Syndicate Bank slid by 3 per cent at 1Rs 09, while Indian Overseas Bank dropped 2.11 per cent to Rs 64.80 and Oriental Bank of Commerce fell 2.11 per cent to Rs 234.80.

Moody's attributed the cut in the ratings to falling asset quality, pressure on profitability and capital generation.

It revised IOB's standalone rating from D to D- and revised the outlook from ‘stable' to ‘negative'. However, it reaffirmed the Bank's Baa3/Prime-3 foreign currency deposit ratings.

Moody's cut Syndicate Bank's BFSR to D from D+ and downgraded other instruments, including the local currency deposit rating, to Baa3/P-3 from Baa2/P-2 and the senior unsecured debt rating to Baa3. The foreign currency senior unsecured debt was cut to Baa3 from Baa2 on Syndicate Bank's medium-term note programme.

Banking stocks have come under severe pressure with even private sector banks declining over the last few weeks. However, PSU banks have been the worst hit on fears of deteriorating asset quality. Several PSU banking stocks have now hit their 52-week lows.

Story first published: Tuesday, March 26, 2013, 10:34 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more