S&P puts IDBI Bank ratings on watch

S&P said it put IDBI Bank Ltd.’s ratings on CreditWatch with negative implications after a breach of its regulatory capital requirements.

“The bank expects to raise capital from its majority shareholders – Life insurance Corp. of India (LIC; 51%) and the government of India (46%) – before Sept. 30, 2019, to meet the shortfall, but the quantum and timing of the capital infusion is uncertain, in our view,” said S&P in a press release.

S&P noted this is the second time IDBI breached the regulatory minimum over the past two years.

The agency said it believes the Indian government remains committed to help the bank.

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