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Fitch downgrades viability ratings of four Indian banks citing covid-19 impact

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While the viability rating of SBI, ICICI Bank and Axis Bank was lowered to BB, for BoB it was lowered to BB- Fitch Ratings on Thursday downgraded the viability rating (VR) of State Bank of India (SBI), ICICI Bank, Bank of Baroda (BoB) and Axis Bank by one notch each, citing the impact of covid-19 on operating environment.

While the viability rating of SBI, ICICI Bank and Axis Bank was lowered to BB, for BoB it was lowered to BB-. The rating agency said that SBI’s VR downgrade reflects the heightened risks that weakening asset quality will pose to its less-than-satisfactory loss-absorption buffers. “We expect the bank's financial performance to worsen in the foreseeable future, although asset-quality problems may not materialise until the

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