Credit rating agency, CARE has reaffirmed ‘AAA’ ratings to State Bank of India’s Lower Tier II Bonds worth Rs 14204.99 crore, Lower Tier II Bonds worth Rs 16016.40 crore and Perpetual Bonds worth Rs 2165.00 crore.
The ratings factor in the majority ownership and support from GOI and SBI’s systemic importance and dominant position in the Indian banking sector, given its large asset size and extensive branch network. The rating also takes into account the bank’s strong CASA base, comfortable liquidity profile, comfortable capitalization levels, weak asset quality and pressure on profitability. Continued ownership and support from GOI, profitability and asset quality are the key rating sensitivities.
State Bank of India has reported 35.07% fall in its net profit at Rs 2375.01 crore for the second quarter ended September 30, 2013 as compared to Rs 3658.14 crore for the same quarter in the previous year. However, total income of the bank has increased by 12.88% at Rs 37199.92 crore for quarter under review as compared to Rs 32953.47 crore for the quarter ended September 30, 2012.
The ratings factor in the majority ownership and support from GOI and SBI’s systemic importance and dominant position in the Indian banking sector, given its large asset size and extensive branch network. The rating also takes into account the bank’s strong CASA base, comfortable liquidity profile, comfortable capitalization levels, weak asset quality and pressure on profitability. Continued ownership and support from GOI, profitability and asset quality are the key rating sensitivities.
State Bank of India has reported 35.07% fall in its net profit at Rs 2375.01 crore for the second quarter ended September 30, 2013 as compared to Rs 3658.14 crore for the same quarter in the previous year. However, total income of the bank has increased by 12.88% at Rs 37199.92 crore for quarter under review as compared to Rs 32953.47 crore for the quarter ended September 30, 2012.
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