Global rating agency Moody's today upgraded its outlook on the state-run lenders Central Bank of India and the Indian Overseas Bank (IOB) to positive from stable on the back of capital infusion from the government. It affirmed the long-term local and foreign currency bank deposit ratings of both the lenders at Ba3. The agency also affirmed the banks' baseline credit assessments (BCAs) at b3 and their counter-party risk assessments (CRA) at Ba2(cr)/NP(cr). Under the government's recapitalisation plan, the Central Bank of India will receive Rs 5,160 crore, while IOB will get Rs 4,690 crore in new capital. "The positive outlook reflects the upward pressure that could develop on these banks' long-term ratings, if their credit fundamentals — namely capital positions — continue to improve over the next 12-18 months due to capital infusions from the government," Moody's said in a report.