Rating agency Moody’s has revised its rating outlook to negative from stable for public sector lender Punjab National Bank (PNB) on account of worsening asset quality which was exerting pressure on profitability and capital. The bank was said to be particularly challenged by the prevailing operating environment, characterised by high inflation and high interest rates.
Net interest income of the bank for the quarter ended September 30, 2012 grew by 5.7% to Rs 3,649.4 crore, against Rs 3,452.6 crore, quarter-on-quarter (Q-o-Q). The bank's Gross NPAs for the quarter stood at 4.66% against 3.34% in the previous quarter. Net NPAs of the bank also has increased to 2.69% from 1.68% (Q-o-Q).
