Global rating agency Moody's has upgraded the long-term local and foreign currency deposit ratings of Central Bank of India and Indian Overseas Bank to Ba2 from Ba3. The agency has also affirmed local and foreign currency deposit ratings of Bank of India, Canara Bank, Oriental Bank of Commerce and Union Bank of India at Baa3 "For Central Bank and Indian Overseas Bank, which are among the weakest rated state-run banks, the rating upgrade reflects the improved solvency of the banks, following the capital infusion," Moody's said Monday. The ageny estimates that both banks will achieve a common equity tier 1 of over 8 percent by March, creating a buffer above the Basel III mandated 7.375 percent, which includes a minimum core capital of 5.5 percent and a capital conservation buffer of 1.875 percent. Last month the government infused Rs 48,200 crore into 12 state-run banks. Also read|\u00a0Bharti Airtel shares jump 8% after GIC, Singtel mega fund infusion plan; key things to know From this, Bank of India gets Rs 4,640 crore, Central Bank-Rs 2,560 crore, Indian Overseas Bank-Rs 3,810 crore, and Union Bank-Rs 4,110 crore. Between December 2018 and January 2019, IOB received Rs 6,690 crore, Central Bank-Rs 1,680 crore and Bank of India received Rs 10,090 crore in new capital, which are in the form of recapitalisation bonds. The rating agency said the affirmation of Bank of India, Indian Overseas Bank, and Union Bank's ratings reflect it's view that the capital infusion has alleviated some of the downside risks to their BCAs, adjusted BCAs and ratings. "All three will also achieve a CET1 ratio comfortably above the regulatory requirement," it. Based on December 2018 RWA, the CET1 ratios of BOI, OBC and UBI will be 10.7, 10.2 and 9 percent, respectively, following this latest round of capital infusion. Although Canara did not receive any capital in the current fiscal, rating affirmation takes into account expectation that the bank will be able to achieve the mandated CET1, it said. The pace of new bad loans creation has come down across all the six banks in the three quarters compared to the last three years. With an improved loan loss coverage and better asset quality, credit costs will be lower which result in improved profitability in 2020, Moody's said.