Several Public and Private Sector Banks to be affected by Reserve Bank of India’s move on group exposure, the Moody report suggested. State Bank of India (SBI) and ICICI Bank are among those that would be affected if RBI implements its proposed guidelines on banks’ exposure to their group entities, global credit rating agency Moody’s said Monday.
Last week, the Reserve Bank of India (RBI) released draft guidelines to limit banks’ exposure to their own group non-financial and financial entities. As per Moody’s Investors Service report, the proposed rules would hurt companies that depend on parent banks for capital and brand support, particularly those with large international operations, or those that operate insurance, securities or asset management businesses that need capital and liquidity support to meet their business needs.
The report also suggests that “affected banks” include ICICI Bank, State Bank of India, Bank of India, Bank of Baroda and Kotak Mahindra Bank.