S&P Global Ratings on Tuesday placed IDBI Bank Ltd's 'BB/B' ratings on credit watch negative after capital breach.
IDBI was found in breach of its regulatory capital requirements after a substantial loss in first quarter of fiscal 2020.
"Believe breach is temporary and a capital infusion by LIC and the Indian government could help IDBI to replenish capital," said the ratings agency.
IDBI Bank's first quarter net loss widened on the back of higher provisioning and lower net interest income.
The bank posted a net loss ₹3,800.84 crore for the three months ended 30 June compared to a loss of ₹2,409.89 crore in the year-ago period.
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