Ways2finance: Moody’s may downgrade 13 banks

New Delhi: Global rating agency Moody's may downgrade ratings of 13 Indian banks—including bigwigs like SBI and ICICI Bank—as the agency would now assess the government's ability to support the banking sector on the basis of the impact of the economic and financial crisis.
    "Moody's Investors Service on FRiday placed the ratings of 13 Indian commercial banks on review for possible downgrade," the rating agency said.
    The rating agency did so because it reformed its criteria of assessing India's ability to support the banking sector in the event of crisis in the sector. The new criteria now looks at the extent to which India's ability to provide support to its banking system, if needed, is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis.
    The factors that Moody's will consider include the size of the banking system in relation to the government's resources and the level of stress in the banking system.
    The banks whose ratings are placed under review are SBI, ICICI Bank, PNB, Bank of Baroda, Bank of India, Canara Bank, HDFC Bank, IDBI Bank, Union Bank of India, Axis Bank, Central Bank of India, Syndicate Bank and Oriental Bank of Commerce. AGENCIES