IDBI Bank slips 10% after S&P places ratings on CreditWatch negative

The rating agency said it placed the ratings on CreditWatch to reflect the uncertainty regarding IDBI's ability to meet its regulatory capital requirement over the next few months.

IDBI Bank slipped 10 per cent to Rs 26.55 on the BSE in Wednesday's early morning trade after S&P Global Ratings placed the bank’s 'BB/B' ratings on credit watch negative after capital breach. The stock was trading close to its 52-week low level of Rs 23.55, touched on August 23 in intra-day deal.

“The bank is in breach of its regulatory capital requirements after a substantial loss in first quarter of fiscal 2020 (Q1FY20). We placed the ratings on CreditWatch to reflect the uncertainty regarding IDBI's ability to meet its regulatory capital requirement over the next few months”, the