S&P Global Ratings has assigned Bank of India (BoI) a ‘BBB’ long-term issuer credit rating and an ‘A-2’ short-term rating, citing the bank’s adequate capitalisation, solid funding and healthy liquidity. The ratings agency said the long-term rating is one notch above BoI’s stand-alone credit profile, reflecting the likelihood of extraordinary government support if required. S&P highlighted BoI’s important role as a public sector bank in promoting financial inclusion and noted that majority government ownership and control provide strong links between the bank and the government. The agency said the bank’s solid deposit base, supported by customer confidence in its government ownership, along with ample liquidity, strengthens its credit profile. The outlook on the long-term rating remains stable, with S&P expecting BoI to maintain adequate capital, solid funding and sufficient liquidity over the next two years. However, profitability and asset quality remain weaker than industry averages, which temper the bank’s overall strengths. S&P expects BoI to continue improving its risk management and asset quality while maintaining sufficient capital to support credit growth above the industry average. Overall, the rating reflects confidence in the bank’s financial stability, funding position and government backing, while highlighting the need for continued improvement in profitability and asset quality.
Bank of India Gets ‘BBB’ Rating from S&P, Outlook Stable
