Rating agency Moody’s has revised its rating outlook to negative from stable for public sector major Bank of Baroda (BOB) on account of worsening asset quality which was exerting pressure on profitability and capital. The banks are particularly challenged by the prevailing operating environment, characterised by high inflation and high interest rates.
Gross non-performing assets (NPAs) of the bank have increased at 1.91% for the quarter ended September 30, 2012 as against 1.41% in the same quarter of previous year. Net non-performing assets (NPAs) of the bank were at 0.82%, higher than 0.47% in the similar quarter of previous fiscal.
