ICRA downgrades the rating for Rs 11.59 billion Basel II lower tier II bonds programme of Central Bank of India (CBI) to [ICRA]A+(negative) from [ICRA]AA-(negative) with a negative outlook.
The rating downgrades takes into account the continued weakness in the operating and financial performance of the bank as reflected in the continued losses during 9MFY2017.
The bank has reported net losses of Rs 18.47 billion during 9MFY2017 as against loss of Rs 14.18 billion during FY2016. Sustained losses from FY2016 to 9MFY2017 have resulted in weak capitalisation levels and solvency profile.
Given the large quantum of immediate as well as future capital requirements under Basel III regulations and relatively weak position in terms of ability to raise the capital, the outlook has been retained as negative.
Shares of the company declined Rs 0.85, or 0.93%, to trade at Rs 91.00. The total volume of shares traded was 10,500 at the BSE (11.30 a.m., Wednesday).