State Bank of India on Tuesday came out against Moodys move to downgrade its debt rating, saying the decision was uncalled for and its concerns for capital were misplaced.
Defending the banks position in a press conference, SBIs MD and CFO Arundhati Bhattacharya said, They have displayed lot of concerns on capital, which is misplaced. The bank has sufficient capital to meet the Basel III norms. We should be in a better position to raise capital from government and market. SBI controls one-fifth of the loans and deposit market and the government has a stake of 63 per cent.
We had explained our views to Moodys, allaying their concerns on debts, deposits as well as recapitalisation, but still they went ahead with the downgrade. We believe Moodys is overly concerned, and that is completely misplaced. What Moodys feels is their view and we dont subscribe to that, she said.
According to Bhattacharya, the bank still has the highest rating amongst the public sector banks when it comes to banks financial stability rating from Moodys. On Monday, Moodys had cut SBIs senior unsecured debt and local currency deposit rating by a notch to Baa3 from Baa2, citing asset quality and recapitalisation concerns.