Fitch: India banks to negative

Fitch Ratings said it revised the outlook on the BBB- long-term foreign-currency issuer default rating of India-based financial institutions to negative from stable and affirmed the rating.

These include six government banks, including an international banking subsidiary of a government bank, along with two private banks, two wholly owned government institutions and one infrastructure finance company.

The banks include the State Bank of India, Punjab National Bank, Bank of Baroda, Bank of Baroda (New Zealand) Ltd., Canara Bank, IDBI Bank Ltd., ICICI Bank Ltd., Axis Bank, Export-Import Bank of India, Housing and Urban Development Corp. Ltd., Infrastructure Development Finance Co. Ltd.

The action follows the revision of the outlook on India's outlook to negative from stable, Fitch said.

The outlook revision of the financial institutions reflects their close linkages with the sovereign by virtue of their high exposure to domestic counterparties and holdings of domestic sovereign debt, the agency said.

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