INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of ICICI Bank declined nearly 2 per cent to Rs 416 while those of Axis Bank slipped nearly 1 per cent to Rs 805.55, a day
after global rating agency Fitch downgraded them.
As per a PTI report, Fitch said it took the rating action after lowering its midpoint for
India's operating environment to 'bb+' from 'bbb-' following a review of the banking sector's performance, particularly in the last
three years, the regulatory framework for the sector, and the outlook in the near term.
Fitch Ratings downgraded ICICI Bank's Long-Term
Issuer Default Rating (IDR) to 'BB+' from 'BBB-' and its Viability Rating to 'bb+' from 'bbb-'
Fitch also downgraded the Long-Term IDR and Viability Rating of Axis Bank to 'BB+' and 'bb+', respectively, from 'BBB-' and 'bbb-', the PTI
report suggested.
Fitch further said ICICI Bank's core capitalisation is higher than that of most other Indian banks but within the
current operating environment poses only a moderate buffer against risks.