Moody's affirms IDBI Bank

Moody's Investors Service said it affirmed IDBI Bank's local-currency deposits rating at Baa3 and prime-3, foreign-currency senior unsecured debt rating at Baa3, foreign-currency senior unsecured debt program at provisional Baa3, foreign-currency subordinated debt program at provisional Ba1 and foreign-currency junior subordinated debt program at provisional Ba2.

The agency also said it affirmed its foreign-currency deposit rating at Baa3 and prime-3.

The outlook is stable.

The affirmations consider the bank's improving financial position, driven by rising net interest margins and developing retail franchise as a commercial bank, Moody's said.

The affirmations also reflect improved capital levels after last year's equity infusion by the Indian government, the agency said.

While the Indian operating environment is challenging, the bank's ratings have sufficient cushion to absorb the base-case assumptions for rising non-performing loans, Moody's added.

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