SBI's rating and Govt of India

The editorial is well written.The downgrading of SBI's rating by Moody reflects Govt's insensitiveness to safeguard the largest bank of the country with timely measures to raise its capital to the prescribed level.The Chairman of the bank has also to be blamed for his utterances against the previous chairman for allged window dressing of banks's balance sheet. The banks operations continue to be strong despite adverse economic conditions. Its deposit and advance growth have been well above many pvt sector and public sector banks.Its NIM is also comparatively high comapred to that of its peer group.The npas, provisions and profits have perhaps not been at the desired levels and for that the general performance of the economy needs improvement. All said, the bank has a competent management and support of its large clientele of customers and investors.The downgrading is only a warning to the bank to do well and it is not going to affect the bank's operations in any manner.

T.V.Gopalakrishnan

(This appeared in The Hindu Business Line dated 7/10/11)