Singapore - Moody's Investors Service has affirmed the long-term local and foreign currency bank deposit rating of IDBI Bank Ltd (IDBI) at B1 and changed the outlook to positive from stable.
"Moody's has also affirmed IDBI and its DIFC branch's long-term foreign currency senior unsecured debt rating at B1 and changed the outlook to positive," it said in a statement.
The positive outlook reflects the upward pressure that could develop on the bank's long-term rating, if its credit fundamentals -- capital position -- continue to improve over the next 12-18 months due to capital infusions from the Indian government.
The positive outlook also factors in Moody's view on the expected evolution of IDBI's balance sheet, including a stabilisation in asset quality and continued stable funding and liquidity positions.
According to the recapitalisation plan announced in October 2017, the government has committed to infuse Rs 1.53 trillion into the public sector banks by March 2019, of which Rs 800 billion will be injected in the form of recapitalisation bonds.