Moody's upgrades IDBI's foreign currency rating; outlook labeled positive

Rating agency Moody’s has upgraded IDBI Bank’s foreign currency rating from B1 to Ba2 after the bank received fresh capital from the state owned insurance behemoth -- Life Insurance Corporation.

The public sector lender received capital to the tune of Rs 5,030 crore from the allotment of new shares to LIC in January 2019. Further, it had received Rs 14,500 crore in capital from LIC in December 2018.

This capital infusion will help the public sector lender to negotiate better terms on its foreign fund raising exercise, mainly from its branch in Dubai International Financial Center.

According to Moody’s, “The capital infusion will