Mumbai, Moody's Investor Services has downgraded the long-term local and foreign currency deposit ratings of State Bank of India, HDFC Bank to Baa3 from Baa2, maintaining their outlook as negative.

It has also downgraded IndusInd's long-term local and foreign currency deposit ratings to Ba1 from Baa3 and its BCA to ba2 from ba1 and the rating outlook is negative.

The downgrade comes a day after the rating agency downgraded India's sovereign rating.

Moody's has primarily attributed the downgrade to the economic disruption caused by the coronavirus outbreak and the downgrade of the sovereign rating.

The ratings agency has also downgraded the long-term issuer rating of EXIM India to Baa3 from Baa2, keeping its outlook negative, said a Moody's statement.

Consequently, Moody's has downgraded HDFC Bank's Baseline Credit Assessment (BCA) to baa3 from baa2.

The deposit ratings of these banks are at the same level as India's Baa3 sovereign rating.

Moody's has placed the Baa3 long-term local and foreign currency deposit ratings of Bank of Baroda, Bank of India, Canara Bank and Union Bank of India and their ba3 BCAs under review for downgrade.

It has affirmed Punjab National Bank's long-term local and foreign currency deposit ratings at Ba1 and its BCA at b1. The rating outlook of PNB has been changed to stable from positive.

In the case of Central Bank of India and Indian Overseas Bank, Moody's has affirmed their long-term local and foreign currency deposit ratings at Ba2 and their BCAs at b2. The rating outlook of these issuers is maintained as stable.

"The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, volatile oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets," it said.

According to the rating agency, the Indian banking sector has been affected given the disruption to India's economic activity from the coronavirus outbreak, which is weakening borrowers' credit profiles.