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Bank of India said that global credit rating agency Standard & Poor's has revised the outlook on the bank to ‘negative’ from ‘stable’.
A negative rating outlook means that the rating may be lowered.
However, rating of the bank has been affirmed at 'BBB-‘ long term and 'A-3’ short term issuer credit rating and 'BBB-' long term issue rating on BoI's senior unsecured notes, BoI said in a notice to BSE.
An entity rated 'BBB' has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.
An entity rated 'A-3' has adequate capacity to meet its financial obligations. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.
The bank had posted a net loss of Rs.1,506 crore for the December quarter this fiscal compared to a net profit of Rs.173 crores for Q3 FY’15.
The ratio of gross NPAs moved up from 7.55 per cent in Q2 to 9.18 per cnet in Q3-FY’16, whereas the net NPA ratio moved up from 4.31 per cent to 5.25 per cent on sequential quarter basis.
According to the bank, the NPA position reflects partial impact of the Asset Quality Review (AQR) exercise of RBI.
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