IDBI Bank falls on S&P downgrade to below investment grade

Shares in IDBI Bank Ltd fell as much as 2 per cent on Tuesday after ratings agency Standard and Poor's downgraded the lender's rating to below investment grade citing expectations for weaker asset quality.

S&P lowered IDBI's foreign currency issuer credit rating to "BB-plus/B" from "BBB-minus/A-3." The outlook is "negative."

"We downgraded IDBI because we expect the bank's asset quality to remain weak over the next 12-18 months," said Standard and Poor's in a report on Monday.

Copyright: Thomson Reuters 2013