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Moody’s Upgrade PSU Banks: There has been news of relief for public sector banks which have been facing the problem of NPA for the past several years. Rating agency Moody’s has upgraded the ratings of four public sector banks. Moody’s has upgraded the long term local and foreign currency deposit ratings of these banks.
The name of the country’s largest bank Indian Stake Bank is included in the government banks whose long-term ratings have been upgraded by the rating agency Moody’s. SBI’s long term rating has been retained at Baa3. While the ratings of Canara Bank, Bank of Baroda and Punjab National Bank have been upgraded from Ba1 to Baa3. According to Moody’s, the long term rating outlook of these banks is stable.
Moody’s has said in its statement that there is a gradual improvement in the credit condition in the country. In the last three years, the problems related to NPA and loans have reduced. Moody’s said that there is an improvement in the financial health of the corporate world. NBFC’s problems have reduced. Despite the economic crisis due to the Corona epidemic, retail loans have performed well. However, Moody’s believes that there is a risk in front of banks regarding loans given to MSMEs. He believes that after the cost of loans has increased, the concern about the loans given to MSMEs has increased.
Moody’s says that India’s economic growth will slow down due to increase in interest rates and global economic slowdown, but despite this, India will perform better than other emerging economies, which will benefit these banks.
The effect of Moody’s rating upgrade is visible on the stocks of these banks on Friday. Bank of Baroda is trading up by 1.57 per cent, PNB by 1.05 per cent, SBI by 0.88 per cent and Canara Bank by 0.84 per cent.
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