Shares of IDBI Bank were lower nearly 3 percent intraday on Wednesday after its Indian deposit receipts got a downgrade from a ratings agency.
The bank’s long term IDR was downgraded to BB+ from BBB-, but maintained an overall stable outlook.
Apart from this, the bank’s short term IDR, viability rating, support rating and a medium term note programme was also downgraded by the ratings agency.
“The said revision in rating is due to a sharper than expected deterioration in IDBI Bank's financial profile, as reflected in its much lower core capitalisation following two consecutive years of rising NPLs and heavy losses. Fitch expects these pressures to remain over the medium term,” the company said in a filing to the exchanges.
The stock has eroded investors’ wealth, falling over 22 percent in the past one month, while its three-day gain stood at 4.15 percent. At 14:24 hrs, IDBI Bank was quoting at Rs 60.10, down Rs 0.85, or 1.39 percent on the BSE.
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