Canara Bank Stands Strong: Fitch Reaffirms 'BBB-' Rating Amid Economic Headwinds

Fitch Ratings has reaffirmed Canara Bank's Long-Term Issuer Default Rating (IDR) at 'BBB-' with a stable outlook, highlighting the bank's strength in the backdrop of economic difficulties. The agency also confirmed Canara Bank's Viability Rating (VR) at 'bb-' and Government Support Rating (GSR) at 'bbb-'. The rating demonstrates Fitch's trust in Canara Bank to fulfill its financial obligations and the high likelihood of government support if required. The bank has demonstrated a fresh loan growth appetite, averaging about 13% from FY21, with the emphasis being on farm and corporate segments. Even with anticipated margin pressures, Fitch expects Canara Bank to sustain its profitability levels in accordance with projections.

 

Source: Economic Times, Business Standard