Fitch Ratings has upheld the long-term issuer default rating (IDR) of “BBB-” for both the State Bank of India (SBI) and Canara Bank. The agency also maintains a “stable” outlook for these state-run lenders. Despite variations in risk appetite and loan growth patterns, both banks exhibit adequate capacity for fulfilling their financial commitments.
Fitch highlights SBI’s higher-than-typical risk appetite, despite a slowdown in total loan growth. The bank’s strong financials and dominant market position underpin its stable outlook. Fitch projects improved asset quality for SBI, expecting its impaired-loan ratio to decline to 2.0% by FY25.
For Canara Bank, Fitch notes a resurgence in loan growth, particularly in farm and corporate sectors. However, the bank exercises caution in retail lending compared to peers, maintaining a balanced approach.
Both SBI and Canara Bank exhibit promising profitability prospects. SBI’s profitability continues to rise, driven by improved operating profit ratios and effective management of impairment charges. Canara Bank’s operating profit ratio has also increased, and despite expected margin pressure, Fitch believes it can maintain profitability levels in line with forecasts.
On April 16, SBI closed marginally lower, while Canara Bank experienced a slight decline in trading.
Public sector banks (PSBs) are poised to deliver approximately 30% higher dividends to the government…
Bank of Maharashtra has emerged as a top performer among public sector banks, showcasing impressive…
In a proud moment for Kannadigas and dairy farmers in Karnataka, the Scotland cricket team…
In a world where speed and connectivity reign supreme, the race towards the next generation…
Venezuela has recently witnessed a poignant environmental milestone, marking a grim reality of the climate…
Fusion Micro Finance has obtained a $25 million loan from the United States International Development…