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Bank of Baroda
Standard & Poors, April 2010
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Abstract
Established market position Adequate profitability Comfortable liquidity Modest asset quality given a large proportion of the portfolio is unseasoned Modest capitalization that is likely to deteriorate further Operating environment and sovereign risk The rating on Bank of Baroda (BOB) reflects the bank's strong market position in the domestic market in terms of deposits, its adequate profitability and capitalization, and comfortable liquidity profile. However, the bank's asset quality is modest compared with its domestic peers'. We expect extraordinary government support to be available to BOB in a distress situation due to the bank's majority government shareholding and its systemic importance. However, the current rating does not incorporate this support. The government's majority ownership of 53.8% supports BOB's strong retail franchise. As...
Companies mentioned in this report are: Bank of Baroda (Unsolicited Ratings)
Action: Review
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