Moody's Investors Service has affirmed the long-term ratings and changed the outlook to positive from stable for 12 Indian government-owned financial institutions. The rating actions are in line with Moody's affirmation of the Government of India's Baa3 issuer and senior unsecured ratings on Apr. 9, 2015, and Moody's changing of the sovereign's ratings outlook to positive from stable on the same date.

Moody's has also downgraded the local currency bank deposit ratings and the senior unsecured ratings of three Indian private sector banks to Baa3/P-3 from Baa2/P-2. The outlook on all the long-term ratings of these banks has been changed to positive. The foreign currency deposit rating of these three banks has been affirmed at Baa3/P-3 and the outlook on their long-term ratings has been changed to positive from stable.

The 12 affected government-owned financial institutions are, Bank of Baroda, Bank of India, Canara Bank, Export-Import Bank of India, Indian Railway Finance Corporation , Oriental Bank of Commerce, Power Finance Corporation, Punjab National Bank, Rural Electrification Corporation, State Bank of India, Syndicate Bank, and Union Bank of India.