Moody's cuts outlook to negative for 3 PSU banks

 
Rating agency Moody’s revised the rating outlook to negative from stable for three public sector banks due to worsening asset quality which is exerting pressure on their profitability and capital. These three banks – Punjab National Bank, Bank of Baroda and Canara Bank has witnessed increase in stress with
both gross non-performing asset and restructured loan portfolio rising. According to the rating agency, these banks are particularly challenged by the prevailing operating environment, characterised by high inflation and high interest rates.