Moody's upgrades Indian banks

Moody's Investors Service said it upgraded the long-term local- and foreign-currency deposit ratings of Bank of India and Central Bank of India to Ba2 from Ba3, along with its baseline credit assessment and adjusted baseline credit assessment to B2 from B3.

The agency also affirmed local- and foreign-currency deposit ratings at Baa3/P-3 on Bank of India, Canara Bank, Central Bank of India and Union Bank of India.

Moody's also said it changed the outlook on Central Bank of India and Indian Overseas Bank to stable from positive.

The Indian government announced a capital infusion of Rs. 482 billion into 12 public sector banks, the agency said.

Funding and liquidity remains robust for all the banks impacted by this action, even though their solvency profiles have been under stress, due to rising non-performing loans and high credit costs, Moody's said.

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