An upgrade will be contingent upon the bank’s ability to develop its franchise and achieve greater economies of scale, while maintaining its return on assets, asset quality and capital structure at levels commensurate with a higher rating, Fitch said.
The rating agency noted that SB has managed the recovery of its non-performing loan (NPL) stock better than most of its peers.
NPLs reduced by 23 percent on an absolute basis in the 12 months to endJune 2010, due to concerted recovery efforts.
"The bank expects further reductions in absolute NPLs, owing to its continued efforts and an improving macroeconomic environment," Fitch Ratings said.
Strong recoveries, along with an increased share of pawning advances - goldbacke