S&P places IDBI Bank's rating on credit watch with negative implications

Global rating agency Standard and Poor's has placed IDBI Bank's foreign currency issuer rating and unsecured debt under watch with negative implications due to uncertainty over the bank's ability to meet its regulatory capital requirement over next few months.

The agency said it could lower its rating if the bank failed to restore its capital position in time. A net loss in the first quarter of fiscal 2019, combined with the bank's buyback of additional tier-1 (AT1) capital instruments, eroded IDBI's capital levels to below the regulatory minimum for a banking license. 

"We have placed the ratings on CreditWatch due