S&P assigns 'BBB-' rating to Bank of Maharashtra on strong financial parameters

State-owned Bank of Maharashtra ( BoM) on Thursday said global rating agency S&P has assigned it 'BBB-' rating with a 'Stable' outlook, underscoring the bank's strong financial fundamentals.

The investment grade provided by the rating agency will help the bank reduce the cost of funds and also enable it to raise capital from the overseas market at a better rate.

Recently, S&P revised upward India's sovereign rating to 'BBB/Stable'.

S&P Global Rating has assigned the bank a Standalone Credit Profile (SACP) rating of 'BBB-', underscoring its strong financial fundamentals and sound governance practices, BoM said in a statement.

This recognition marks a significant milestone, placing the bank three notches above its current rating of 'BB-' from Fitch Ratings, and reflects the institution's progress and resilience, it said.

S&P said the rating reflects the bank's robust capitalisation, solid funding base and healthy liquidity.

The stable outlook indicates that the lender is expected to maintain its financial strength over the next two years even if performance moderates.

"This international recognition is a testament to our improving performance and the trust our stakeholders place in us. We remain committed to upholding the highest standards and driving sustainable growth," Nidhu Saxena, MD & CEO of the bank, said.

With this rating, Bank of Maharashtra joins a select group of Indian public sector banks recognised by S&P Global Ratings, enhancing its credibility among global investors, strategic partners and regulatory institutions, the statement added.