Stable outlook for key Indian banks amid economic turbulence

Fitch Ratings has reaffirmed the stable outlook for several major Indian banks, including Canara Bank, State Bank of India (SBI), Bank of Baroda (BOB), Punjab National Bank (PNB), and Union Bank of India.

The ratings agency affirmed various credit ratings for these institutions, signaling confidence in their financial stability despite ongoing economic challenges.

In its latest assessment, Fitch Ratings affirmed Canara Bank’s Long-Term Issuer Default Rating (IDR) at ‘BBB-’ with a stable outlook. Additionally, the agency affirmed Canara Bank’s Viability Rating (VR) at ‘bb-’ and Government Support Rating (GSR) at ‘bbb-’. This reaffirmation underscores Fitch’s positive outlook on Canara Bank’s ability to navigate the current economic landscape.

Similarly, Fitch Ratings maintained the stable outlook for State Bank of India (SBI), India’s largest public sector bank. SBI’s LongTerm IDR was affirmed at ‘BBB-’, along with its Viability Rating (VR) at ‘bb’ and Government Support

Rating (GSR) of ‘bbb-’.

This reaffirmation reflects Fitch’s confidence in SBI’s robust position in the banking sector.

Furthermore, Fitch Ratings affirmed the Long-Term Issuer Default Ratings (IDRs) of Bank of Baroda (BOB) and its subsidiary, Bank of Baroda (New Zealand) Limited (BOB NZ), at ‘BBB-’ with a stable outlook. BOB’s Viability Rating (VR) was reaffirmed at ‘bb-’, along with its Government Support Rating (GSR) of ‘bbb-’.

Additionally, BOB NZ’s Shareholder Support Rating (SSR) was affirmed at ‘bbb-’, indicating Fitch’s positive assessment of BOB’s overall financial health.

Punjab National Bank (PNB) also received affirmation from Fitch Ratings, with its LongTerm IDR maintained at ‘BBB-’ and a stable outlook.

PNB’s Viability Rating (VR) was affirmed at ‘b+’, while its Government Support Rating (GSR) remained at ‘bbb-’. This reaffirmation underscores Fitch’s confidence in PNB’s resilience amid economic challenges.