The rating firm Crisil, on Thursday, increased the rating of eight public sector banks, following the government's announcement to retain majority stakes in PSBs and to infuse more capital in the public sector lenders.

It should be recalled that Union Finance Minister, Pranab Mukherjee, while presenting the Union budget, had said that the government will keep at least 51 per cent stakes in the public sector banks, keeping them well capitalized.

Crisil said in a statement: "These rating actions were based on Crisil's reassessment of the support PSBs were likely to receive from their majority shareholder, the government of India (GoI), in the wake of GoI's recent steps and pronouncements."

The banks, whose bond ratings have been improved, include Allahabad Bank, Bank of India, Bank of Maharashtra, Central Bank of India, Dena Bank, Punjab and Sind Bank, UCO Bank, and Union Bank of India.

Bank of India and Union Bank of India are upgraded from A++ to AAA rating, the highest rating assigned by Crisil. Canara Bank and Corporation Bank are already enjoying the status of triple A rating, and the outlook has been revised from negative to stable by Crisil, for these two banks.