CRISIL has revised its rating outlook on city-based Allahabad Bank's lower tier II bonds (under Basel II) to negative from stable.
CRISIL, which is a Standard & Poor company outfit, has also downgraded its rating on the bank's Tier I perpetual bonds and Upper tier II bonds to negative from stable.
Giving its rationale, the agency said that the rating actions reflect the expected weakening of Allahabad Bank's credit risk profile due to significant deterioration in its asset quality and earnings profile.
While pointing out that it has factored in the banks support base from the government, CRISIL said that Allahabad Bank's asset quality has been deteriorating over the past year with gross non performing assets increasing to 4.8 per cent as on June 30, 2013 from 1.8 per cent on March 31, 2012.
