InvestorQ : Why has Moody’s downgraded SBI and HDFC Bank?
Anamika Sodhani made post

Why has Moody’s downgraded SBI and HDFC Bank?

Answer
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3 months ago


Moody’s downgraded SBI and HDFC Bank a day after the sovereign downgrade to Baa3. Moody’s has cited economic disruption, fall in asset prices, weak credit off take and chances of higher NPAs as the reasons. Another 9 banks also got de-rated by Moody’s. The agency is of the view that the stimulus will only mitigate some of the credit pressures in the economy and may have limited utility. It expects higher NPAs from MSMEs and retail consumers; apart from industrial defaults.