There is great news for many public sector banks including State Bank of India, Punjab National Bank (PNB). If you also have an account in any of these government banks, then know this important thing…
Tell us about the deposit ratings of SBI, PNB, Canara Bank and Bank of Baroda. There has been an improvement. Rating agency Moody’s has given information about this on Friday.
What is the rating of SBI?
Moody’s Investors Service said in a statement that the long-term ratings of all these public sector banks remain stable. Moody’s has retained SBI’s long-term local and foreign currency bank deposit ratings at Baa3, while the other three PSBs have upgraded their long-term deposit ratings.
What is the rating of Canara and PNB?
It has said that retaining the long term deposit rating of SBI at BAA3 and upgrading the long term deposit rating of Bank of Baroda, Canara Bank and PNB from BAA1 to BAA3 reflects the improvement in India’s macroeconomic outlook. This also reflects the perception of a very high level of government support to banks in times of need.
Improvement in credit position
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 credit conditions in India have gradually improved, with retail loans performing well and the financial health of companies improving. However, small and medium-sized companies continue to pose a risk to the asset quality of banks.
Indian economy will perform better
Moody’s has said that India’s economic growth will be affected by rising rates and global recession but the Indian economy will perform better than other emerging markets. With these factors, the operating environment for banks will remain supportive.
What is the expectation of the rating agency?
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.
