Icra cuts rating on IDBI Bank's bonds

Weak Q3 performance triggers rating review

Rating agency Icra has downgraded rating for IDBI Bank's various bonds from "AA" to "AA-" on the back of substantially weak operating and financial performance in the third quarter (Q) of the financial year (FY) 2016-17. The adverse performance in October-December 2016 quarter led to significant erosion in public sector lender's common equity tier I capital (CET-I).

The bank will be under significant pressure to meet the minimum regulatory level of 6.75 per cent required as on March 31, 2017, as the bank's CET-I stood at 7.24 per cent as on December 31, 2016, prior to adjusting the losses in