Fitch affirms ratings of SBI and Canara Bank at 'BBB-'

"SBI's IDR and GSR are at the same level as India's sovereign rating (BBB-/Stable), reflecting Fitch's view that SBI has the highest probability of extraordinary state support among Indian banks if required. This takes into consideration SBI's market position as the largest Indian bank, the state's 56.9% controlling ownership, and its broader policy role than peers," Fitch said.

SBI's business profile score of 'BBB-' is the highest among Indian banks, which the rating agency said reflects SBI's ability to generate business consistently through the cycle while managing risk better than peer state banks.

SBI's risk profile score of 'BB' takes into consideration its advantage over peers in portfolio selection due to scale, brand loyalty, and widespread presence.

Fitch has also affirmed Canara Bank's Viability Rating (VR) at 'BB-' and Government Support Rating (GSR) at 'BBB-'.

"Canara's Long-Term IDR and its GSR are at the same level as India's sovereign rating (BBB-/Stable), reflecting our view of a high probability of extraordinary state support for the bank, if required. This takes into consideration the state's 63% ownership as well as the bank's large size and reach, and our assessment of the state's strong propensity to support the banking system in general," the agency said.

were also trading 1% lower at Rs 586.60 on BSE in the afternoon.