The state-owned bank’s loss largely offsets the Rs 1,800-crore (Rs 18-billion) capital injection the government will make in FY14.
However, Moody’s has reaffirmed a Baa3/Prime-3 rating for the Mumbai-based lender’s global local currency and foreign currency bank deposits.
The outlook on the bank financial strength rating has been changed to negative, from stable.
The outlook on long-term ratings remains negative, indicating the bank's credit quality will continue to be under pressure over the next 12-18 months.
Moody’s said it assumed a very high probability of systemic support to Central Bank, which mitigated a weak standalone credit profile.
The government has provided the bank with capital injections in three successive years (in FY11, FY12 and FY13).
The previous standalone assessment had assumed the government's capital injection in 2013-14
More corporates to default on bank loans by March: Care
Crompton Greaves may sell or shut Canada plant
New pricing policy to hit pharma growth a tad
India's self-created fiscal cliff
Sensex to touch 22,000 mark in 2014: BNP Paribas