Fitch Ratings on Wednesday reaffirmed long- term issuer default ratings (IDRs) of nine banks, including State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB) and ICICI Bank among others at 'BBB-' and also retained their credit rating as 'stable'.
The other banks include Axis Bank, Canara Bank, IDBI Bank, and BoB New Zealand, a Fitch release said. Fitch has also retained its rating on the state-run Indian Bank at 'BB+'. Retaining the ratings, Fitch said that the banking sector faces a challenging economic environment, although the new government's clear electoral mandate gives it the ability to pursue far-reaching economic reforms. Uncertainties and risks remain in implementing key policies necessary to achieve the government's growth and fiscal deficit targets, the release said.
