Moody's cuts Indian bank views

Moody's Investors Service said it revised the outlook to negative from stable for the various deposit and issuer ratings assigned to three Indian banks - Punjab National Bank, Bank of Baroda and Canara Bank.

The agency said the revision in outlook reflects the increased risk posed by current trends in asset quality, with continuing rise in Gross NPLs and restructured loans pressuring profits and capital.

Moody's said these Indian banks are particularly challenged by the prevailing operating environment, characterized by high inflation and high interest rates. These conditions are leading to a slowdown in economic growth and are reducing the repayment ability of some corporate borrowers.

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