S&P boosts six Indian banks

Standard & Poor's said it raised its ratings on the following six Indian banks to BBB-/stable/A-3 from BB+/positive/B: State Bank of India, Icici Bank Ltd., Industrial Development Bank of India Ltd., Bank of India, Indian Overseas Bank and UTI Bank Ltd.

The agency said it also revised the Bank Fundamental Strength rating of Industrial Development Bank to C from D+ while the BFSR for the other five banks continues to be C.

This action follows today's similar upgrade on the sovereign credit ratings on India (foreign currency BBB-/stable/A-3, local currency BBB-/stable/A-3), the agency noted.

According to S&P, the upgrade on the ratings on these banks reflects their improving standalone profiles supported by a better operating environment.

Indian banks are likely to benefit from the country's stable and strong economic prospects, with GDP growth expected at more than 7.5% in the medium term, the agency noted.

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