Global agency downgrades two PSU banks, elevates a Pvt bank

New Delhi: Two public sector banks,Indian Oversees Bank and Central Bank, have been downgraded by Moody's, a global rating agency ,in its latest report.

The agency has also lowered the ranking of Hong Kong branch of Indian Oversees Bank.

Nine other banks including Bank of India, Punjab National Bank and Syndicate Bank, have maintained their position held previously.

Among the private sector banks, only Axis Bank, the third major bank in this sector, has joined the illustrious list.

The agency has found the sum of Rs 20,000 earmarked for recapitalisation under the Indradhanush plan not enough for banks in the public sector. Additional sum will be required to address " insolvency challenges".

The banks in his sector account for 74 per cent of banking assets.

Meanwhile, after a public sector bank, State Bank of India, a private bank , HDFC has come out openly against the loan waiver.

The bank in its annual report has complained that many farmers who regularly paid their loan dues have stopped after loan waiver schemes announced by some states including Uttar Pradesh and Maharashtra, ruled by the BJP. They have done it in the hope of getting some such relief from the state governments.

As a result net non-performing asset percentage has gone up to zero point four four , marking an increase of eleven basis points (sixty per cent).

The gross NPA has risen to 1.24 per cent in view of this rise.