SBI to approach Moody's for review of rating

State Bank of India plans to approach global credit rating agency Moody's Investors Services for a ratings upgrade.

The bank was downgraded in October last year on account of its low Tier-I capital ratio and deteriorating asset quality. SBI reported a Tier-1 capital of 7.60 per cent as of June 30, 2011.

“Our Tier I capital has improved to 9.79 per cent as of March 31, 2012. We now plan to go back to them (Moody's) and seek a review and re-rating,” said Mr Pratip Chaudhuri, Chairman, SBI.

The improvement in Tier-I capital was primarily on account of the Rs 8,000 crore worth fund infusion by the Union Government in March.

“This apart, we have also had a robust internal generation and we are taking huge efforts in optimising use of capital by going in for various credit guarantee schemes by way of CGTSME and ECGC,” Mr Chaudhuri said. The bank's asset quality was under pressure during the second and third quarters of the last fiscal, Mr Chaudhuri said.