Fitch Ratings has assigned India-based IDBI Bank (BBB-/Stable) proposed US dollar-denominated senior unsecured debt an expected rating of 'BBB-(EXP)'. The senior unsecured instruments are rated at the same level as the bank's Issuer Default Rating (IDR), in accordance with Fitch's criteria.
IDBI Bank's IDR is driven by its Support Rating Floor of 'BBB-', which is higher than its Viability Rating of 'bb', and reflects Fitch's expectation of a high probability of extraordinary support from the government of India, if necessary.
IDBI's systemic importance is high, which is driven by its large size and asset share, the government of India's majority shareholding (76.5% following a recent capital injection), and IDBI's role as a strategic shareholder in setting up vital financial institutions, such as ARCIL (India's first asset reconstruction company), SIDBI (SME policy bank) and CCIL (provider of clearing and settlement services). IDBI, along with other state banks, has also received regular capital injections from the government.
