Rating agency Moody’s has downgraded its rating outlook to negative from stable for public sector major Canara Bank 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) rose to 2.58% in the quarter under review as against 1.75% in the same quarter previous year while net NPAs too rose to 2.12% from 1.42%.
