Banking Sector: Moody’s Improves Ratings Of PNB, Canara Bank And Bank of Baroda, Said this on SBI – Economy News

Indian Banking Sector

Indian Banking Sector: Global rating agency Moody’s has shown confidence in the Indian banking sector. Moody’s has upgraded the deposit ratings of Punjab National Bank (PNB), Canara Bank and Bank of Baroda while affirming the long-term deposit ratings of State Bank of India (SBI). Moody’s Investors Service said in a statement that the long-term rating outlook of all these public sector banks remains stable.

Improving Macro Economic Environment

Moody’s has maintained SBI’s Long Term Local and Foreign Currency Bank Deposit Rating at ‘Baa3’. While the long term deposit rating of the remaining three public sector banks has been improved. Moody’s Retains SBI’s Long Term Deposit Rating at ‘Baa3’ and upgrades Bank of Baroda, Canara Bank and PNB’s Long Term Deposit Ratings from ‘Baa1’ to ‘Baa3’ on improving India’s Macro Economic Environment it shows.

Government’s focus on banking sector

It is also clear from this that banks are getting very high level of support from the government at the time of need. Moody’s Bank Deposit Rating reflects a bank’s ability to service its foreign and domestic currency deposit obligations on time. Moody’s said that the debt situation in India has gradually improved, the performance of retail loans has improved and the financial condition of companies has also improved. However, small and mid-sized companies still remain a risk to the asset quality of banks.

Indian economy in better shape

Moody’s said that India’s economic growth will be affected by rising interest rates and global recession, but the Indian economy will perform better than other emerging markets. Due to these factors, the operating environment for banks will remain helpful. The rating agency expects the asset quality of banks to remain good over the next one-and-a-half years, aided by a favorable operating environment and improving balance sheets of companies.


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