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.