State Bank of India fell over 4 per cent after Moody's Investors Service downgraded the public sector bank's financial strength rating (BFSR), to D+ from C- on account of asset quality concern. The downgrade comes ahead of the second quarter earnings and led to a sharp fall in the stock.
Govt may soon infuse capital in SBI The rating agency also said that the non-performing assets (NPA) are likely to continue rising in the near term and higher interest rates and a slower economy might weigh on the SBI's profitability and its creditworthiness.
The bank posted a 46 per cent drop in June quarter net profit, lagging forecasts due to higher provisions for bad loans. Its March quarter net profit had also plunged on higher provisions.
Meanwhile,
Sensex continued to trade down 311 points at 15839.77 at 2.26 pm.
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