Moody’s has affirmed the ratings on State Bank of India’s local and foreign currency deposits of Baa3/P-3. apart from affirming the Baa3 rating on its senior unsecured debt issued through its London branch and the Baa3 rating on its medium term note programme.
While retaining the ratings today, the global ratings agency noted that since the merger of its associate banks in April, SBI’s asset quality deteriorated significantly, which is also due to the economic disruptions since last November.
At end-March 2017, the state-run lender’s gross NPA ratio jumped to 9% on a consolidated basis from 6.9 on a solo basis. Also at the end of June, the consolidated NPA ratio jumped further to 9.9%. It also noted that a large proportion of these NPAs are under different resolution processes.
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