BBB minus for South Indian Bank

The BBB plus (triple B plus) rating assigned to the Rs. 35 crore bonds issue of The South Indian Bank (SIB) has been downgraded to BBB minus (triple B minus).

The revised rating factors in the continuously weakening asset quality of the bank, which is manifested in significant pressures on its capital position and profitability.

The small size of the bank and its regional concentration are the other factors impacting the revised rating. Partly mitigating these is the comfortable liquidity position of the bank on account of its stable deposit base.

SIB is among the smaller private sector banks with a deposit base of Rs. 3,885 crores and advances of Rs. 2,021 crores as at March 31, 2000.

The bank's net profit for 1999-2000 was Rs. 25.90 crores.

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Section  : Business
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