Moody's Affirms Baa3 Ratings for Key Indian Public Sector Banks
| Aspect | Details |
|---|---|
| Rating Agency | Moody's Ratings |
| Banks Rated | Bank of Baroda (BOB), Canara Bank, Punjab National Bank (PNB) |
| Rating Affirmed | Baa3 |
| Outlook | Stable |
| Key Reasons | Improved credit metrics, strong profitability, adequate liquidity buffers |
| Operating Environment | India's strong operating environment supports credit fundamentals over the next 12-18 months |
| Non-Performing Loan (NPL) Ratios (as of March 31, 2024) | BOB: 2.9% (down from 3.8%), Canara Bank: 4.2% (down from 5.4%), PNB: 5.7% (down from 8.7%) |
| Profitability | Improving profitability supports capitalization despite strong loan growth |
| Caution | Increase in funding costs could moderate profitability over the next 12-18 months |
| Liquidity & Funding | Strong liquidity buffers, low reliance on market funds |
| Asset Quality Risk | Rapid growth of unsecured retail loans poses potential risks, but these loans are a small share |
| Loan Loss Reserves | Adequate reserves built to buffer against future credit losses |
| Bank Profiles | |
| Bank of Baroda (BOB) | Headquartered in Mumbai, Rs 16.5 trillion (USD 197.8 billion) in consolidated assets |
| Canara Bank | Headquartered in Bangalore, Rs 15.4 trillion (USD 184.6 billion) in consolidated assets |
| Punjab National Bank (PNB) | Headquartered in New Delhi, Rs 16.0 trillion (USD 191.8 billion) in consolidated assets |