ICICI, Axis Bank slip on Fitch downgrade

NEW DELHI: Shares of ICICI Bank declined nearly 2 per cent to Rs 416 while those of Axis Bank slipped nearly 1 per cent to Rs 805.55, a day after global rating agency Fitch downgraded them.

As per a PTI report, Fitch said it took the rating action after lowering its midpoint for India's operating environment to 'bb+' from 'bbb-' following a review of the banking sector's performance, particularly in the last three years, the regulatory framework for the sector, and the outlook in the near term.

Fitch Ratings downgraded ICICI Bank's Long-Term Issuer Default Rating (IDR) to 'BB+' from 'BBB-' and its Viability Rating to 'bb+' from 'bbb-'.


Fitch also downgraded the Long-Term IDR and Viability Rating of Axis Bank to 'BB+' and 'bb+', respectively, from 'BBB-' and 'bbb-', the PTI report suggested.

Fitch further said ICICI Bank's core capitalisation is higher than that of most other Indian banks but within the current operating environment poses only a moderate buffer against risks.

The shares of ICICI Bank closed 0.92 per cent lower at Rs 418.95 while that of Axis Bank stood 1.12 per cent higher at Rs 821.40 on BSE.