Credit rating agency, Crisil has upgraded the ratings of four banks namely Andhra Bank, Central Bank of India, Dena Bank and Punjab & Sind Bank. The rise in rating comes as a follow up of the announcement by government to infuse capital into these banks.

The rating of certain instruments like Andhra Bank (Tier I perpetual bonds/ upper Tier II bonds) and Central Bank of India (upper Tier-II bonds) have been upgraded to ‘AA+/stable' from ‘AA/stable'. The rating on its lower Tier-II bonds of Punjab & Sind Bank, has been upgraded to ‘AA+/stable' from ‘AA/stable'.

The credit rating on the hybrid instruments of Dena Bank (Tier-I perpetual bonds/ upper Tier-II bonds) has been upgraded to ‘AA/stable' from ‘A+/ positive'.

AA rating offers an increased degree of safety to the instruments.

"We believe that the proposed increase in the Government's stake through equity infusion is a qualitatively superior form of support than the earlier infusion in the form of hybrid capital," said Mr Pawan Agrawal, Director (Ratings), Crisil.