Bank recap: CRISIL upgrades outlook on 18 PSBs from negative to stable

CRISIL said ratings assigned to Basel III tier I bonds have been reaffirmed for nine PSBs and outlook has been retained as 'Negative'

Rating agency CRISIL has revised its outlook on 18 public sector banks (PSBs) from “negative” to “stable” after the government announced bank-wise capital infusion and reform plans.

It has reaffirmed ratings on various financial instruments issued by public sector banks.

The revision in outlook is primarily driven by the government’s PSB recapitalisation programme for this fiscal (2017-18). This will improve the financial risk profile of these banks and help them meet Basel-III regulatory capital norms.

It also provides a cushion against an expected rise in provisioning for non-performing assets (NPAs), CRISIL said in a statement.  

For ratings assigned to