After upgrading India's foreign currency debt rating, Moody's Investor Service on Wednesday upgraded the foreign currency deposit, debt and issuer ratings for 11 Indian banks and financial institutions.

The foreign currency bank deposit ratings for Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, ICICI Bank Ltd, Oriental Bank of Commerce, Punjab National Bank, State Bank of India and Union Bank of India are upgraded to Ba2 with negative outlook from Ba3, the international rating agency said in a statement in London.

The foreign currency debt ratings of Industrial Development Bank of India and Power Finance Corporation are upgraded to Ba1 from Ba2. The foreign currency debt rating of State Bank of India's Resurgent Indian Bond is upgraded to Ba2 with negative outlook from Ba3.

The foreign currency debt rating of ICICI Bank Ltd remains on review for possible upgrade. This rating pierced India's country ceiling for foreign currency debt even prior to the reverse merger of ICICI and ICICI Bank that created the second largest bank in the country. The review is focused on the progress that has been made on further integration of the business of the bank and the financial institution.

The foreign currency subordinated debt rating for ICICI Bank Ltd remains on review for possible upgrade.

The foreign currency issuer rating for IFCI is upgraded to Ba1 from Ba2. The ratings are all raised to the corresponding rating ceilings for FC deposits, debt and issuer ratings in India, with the exception of State Bank of India's foreign currency debt rating that refers to the Resurgent India Bonds.

This rating is at the same level as its deposit rating since these bonds have more deposit than debt characteristics, says Moody's. Although the deposit ratings of some banks are constrained by the country ratings ceilings, other weaker public sector institutions are pulled to the ceiling based on support from the government, adds Moody's.

More specifically, the foreign currency deposit ratings of Central Bank of India and Union Bank of India, the debt rating of IDBI and the issuer rating of IFCI all impute government support.

''This is based on our belief that the government maintains its willingness to support the foreign currency obligations of the banks and financial institutions in case of need,'' Moody's concludes.

UNI