Tuesday, March 04, 2025 | 12:43 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

S&P downgrades long term credit rating of Syndicate Bank

Image

Press Trust of India New Delhi
S&P Global Ratings today said it has lowered its long-term issuer credit rating on Syndicate Bank to 'BB+' due to continued pressure on asset quality, given the tough operating conditions for the corporate sector in India.

"We downgraded Syndicate because we expect the bank's asset quality to remain weak over the next 12 months, following a deterioration in the past two quarters," S&P Global Ratings credit analyst Amit Pandey said.

"Accordingly, we also lowered Syndicate stand-alone credit profile (SACP) to 'bb' from 'bb+'," Pandey added.

S&P Global Ratings said that Syndicate's credit costs will remain high over the next 12 months because of continued pressure on asset quality, given the tough operating conditions for the corporate sector in India.
 

Syndicate bank's reported a full-year loss of Rs 16.4 billion, with losses of Rs 21.6 billion in the last quarter of fiscal 2016, and Rs 1.2 billion in the previous quarter.

"The main reason for these losses was a sharp rise in provisions and nonperforming loans (NPL).

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 30 2016 | 9:48 PM IST

Explore News