New Delhi: State-owned Central Bank of India said in a regulatory filing on Thursday that the rating agency CRISIL has assigned and upgraded its ratings for various securities and debt instruments. Further, the bank notified that CRISIL has upgraded the rating of TIER II Bonds under Basel III from CRISIL A+/Positive to AA- and Stable outlook on May 31.
Further, the bank also said that CRISIL has assigned a rating of AA-/Stable to Proposed Tier II Bonds under Basel III worth Rs 1,500 crores. It also assigned a rating of A+/Stable to Proposed Tier I Bonds Under Basel III worth Rs 1,000 crores. The bank also notified that the rating agency has withdrawn the rating for Tier I perpetual bonds under Basel II as the instrument has been fully redeemed on September 28, 2022.
The bank's rating has been upgraded due to its consistent improvement in profitability and a significant decrease in the number of bad loans. The bank has been profitable for eight consecutive quarters and its profit after tax has increased. The bank has also managed to reduce the percentage of non-performing assets and restructured loans in its portfolio. Additionally, the bank's capital position has improved due to equity infusion from the government and internal earnings. The Reserve Bank of India (RBI) has also lifted certain restrictions on the bank. Overall, the bank is expected to receive strong support from the government and maintain a satisfactory financial position, although there is still room for further improvement in asset quality and earnings.
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