Moody's upgrades IDBI Bank

Moody's Investors Service said it upgraded the long-term foreign-currency senior unsecured rating of IDBI Bank and its Dubai International Financial Centre (DIFC) branch to Ba2 from B1.

The long-term local- and foreign-currency bank deposit ratings of IDBI Bank also were upgraded to Ba2 from B1.

IDBI Bank's baseline credit assessment also was upgraded to B2 from Caa1 and its adjusted baseline credit assessment was is upgraded to B2 from Caa1.

The upgrades conclude a review for upgrade that began in July, Moody's said.

The upgrades reflect the improved solvency of the bank following the completion of a significant capital infusion, the agency explained.

IDBI recently received Rs.50.3 billion from the allotment of new shares to the Life Insurance Corp. of India, Moody's said.

The capital infusion will enable to bank to increase provisions for bad loans, the agency said.

Combined with the bank's stabilizing asset quality, that will result in lower credit costs and improve profitability in 2020, Moody's said.

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