Fitch upgrades ratings for major Indian banks

16 March 2007

Mumbai: Global rating agency Fitch has upgraded its ratings for major Indian banks, including ICICI Bank, HDFC, Punjab National Bank, Canara Bank, Bank of India and IDBI among others a Fitch release said.

Fitch has upgraded the support rating for ICICI Bank, Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India, Union Bank of India and IDBI Ltd from '2' to '3'.

Support rating for HDFC Bank, UCO Bank, Indian Overseas Bank, Oriental Bank of Commerce and Allahabad Bank has been upgraded to '3' from '4'.

The agency has also upgraded IDBI's long-term foreign currency Issuer Default Rating (IDR) to 'BBB-' from BB+ and the bank's individual rating to 'C/D' from 'D/E', the release said.

The rating actions reflect the Indian government's improved ability to provide timely support to systemically important banks as reflected in the government's long-term foreign currency IDR of 'BBB-'.

Fitch Ratings is one of the three large global credit rating agencies. Fitch rates 5700 banks/financial institutions, including some 2,500 insurance companies, more than 1,400 corporates and 100 sovereigns as well as public finance, sub-sovereigns and structured finance transactions.