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

Fitch Ratings has reaffirmed State Bank of India's (SBI) Long-Term Issuer Default Rating at 'BBB-' with a stable outlook, underscoring the bank's resilience in challenging economic conditions. The agency also affirmed SBI's Viability Rating at 'bb' and Government Support Rating at 'bbb-'. This rating reflects Fitch's confidence in SBI's market position and ability to generate consistent business. Despite a slight slowdown in loan growth to 14.5% YoY in 9MFY24, SBI's risk appetite remains higher than typical for its market position. Fitch projects strong profitability prospects for SBI, with the operating profit/risk-weighted asset ratio reaching 2.6% in 9MFY24. The stable outlook aligns with India's sovereign rating, highlighting SBI's systemic importance.

 

Source: Economic Times, NDTV Profit