Moody's puts ratings of 13 Indian banks on watch

Global rating agency, Moody's on Friday placed the ratings of 13 Indian lenders, including State Bank of India and ICICI Bank, on review for possible downgrade.

The decision follows fears of government's inability to support banks in the event of a continued crisis, Moody's said in a press release.

The agency, which had previously used the local currency deposit ceiling (LCDC) as an indicator of national government's ability to support banks, said LCDC may not be adequate if the crisis in financial markets continues.

"This (LCDC) might overestimate the capacity of a central bank to support financial institutions in the event of banking crisis becoming both truly systemic and protracted," Moody's said.

which have been kept under watch are:

State Bank of India
ICICI Bank
Punjab National Bank
Bank of Baroda
Bank of India
Canara Bank
HDFC Bank
IDBI Bank
Union Bank of India
Axis Bank
Central Bank of India
Syndicate Bank
Oriental Bank of Commerce