In an official statement, the agency said that the outlook of SBI and its branches is positive.
It also affirmed the (P)Baa3 ratings on the bank's and its branches' senior unsecured medium-term note (MTN) programme, and the Baa3 rating on the senior unsecured debt issued from its London branch.
"The rating actions reflect our view of the country's 'moderate' macro profile, the bank's standalone financial profile and Moody's 'very high' government support assumptions for SBI," the agency said in a report affirming its ratings.
"Such asset deterioration includes a rise in impaired loans and standard restructured loans, and a smaller cushion to absorb losses, as seen by SBI's low provision coverage and lower tier 1 capital ratio relative to other large banks in emerging markets," it added.
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"Despite these credit challenges, amongst other public sector banks, we expect SBI is best placed to capture the benefits of the improving macro-economic profile of the country as well as the initiative undertaken by the government to ease pressure on corporate asset quality," it added.