HDFC Bank assigned 'BBB-/A-3' by S&P
Standard & Poor's Ratings Services Thursday said it has assigned 'BBB-' long-term and 'A-3' short-term counterparty credit ratings on HDFC Bank Ltd. The outlook is stable.
By INDIATIMES NEWS NETWORK |
SINGAPORE: Standard & Poor's Ratings Services Thursday said it has assigned 'BBB-' long-term and 'A-3' short-term counterparty credit ratings on HDFC Bank Ltd. The outlook is stable. At the same time, Standard & Poor's has assigned 'C' bank fundamental strength rating on HDFC Bank.
"The ratings on HDFC Bank reflect the bank's strong market position in the domestic banking industry, good financial profile supported by strong earnings, healthy capitalization, good loan quality, and diversification," according to Standard & Poor's credit analyst Ritesh Maheshwari.
"The ratings also acknowledge the bank's sound management."
HDFC Bank's strong market position is underpinned by its standing among the top 10 Indian banks. As of Sep 30, 2007, the bank had assets of Rs 1,215 billion. It has a wide national distribution reach with a network of 754 branches and 1,800 ATMs, spanning more than 325 Indian cities and towns, and its effective use of technology channels.
"HDFC Bank's good asset quality is sustained by the bank's low incidence of nonperforming assets and good diversified loan portfolio spread across corporate and retail segments and backed by an effective credit risk management. The bank's return on average assets has been consistently strong at 1.4% or above, primarily supported by its low-cost deposit base and above industry average feebased income. HDFC Bank's management is sound and, in a short span of 13 years, has positioned it among the 10 largest banks in India, while maintaining a good financial profile," Maheshwari noted.
"The ratings on HDFC Bank reflect the bank's strong market position in the domestic banking industry, good financial profile supported by strong earnings, healthy capitalization, good loan quality, and diversification," according to Standard & Poor's credit analyst Ritesh Maheshwari.
"The ratings also acknowledge the bank's sound management."
HDFC Bank's strong market position is underpinned by its standing among the top 10 Indian banks. As of Sep 30, 2007, the bank had assets of Rs 1,215 billion. It has a wide national distribution reach with a network of 754 branches and 1,800 ATMs, spanning more than 325 Indian cities and towns, and its effective use of technology channels.
"HDFC Bank's good asset quality is sustained by the bank's low incidence of nonperforming assets and good diversified loan portfolio spread across corporate and retail segments and backed by an effective credit risk management. The bank's return on average assets has been consistently strong at 1.4% or above, primarily supported by its low-cost deposit base and above industry average feebased income. HDFC Bank's management is sound and, in a short span of 13 years, has positioned it among the 10 largest banks in India, while maintaining a good financial profile," Maheshwari noted.
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