Rating agency Moody’s on Thursday revised its rating outlook to negative from stable for three public sector banks (PSBs), saying their worsening asset quality was exerting pressure on profitability and capital. These three — Punjab National Bank, Bank of Baroda and Canara Bank — have witnessed a rise in both gross non-performing assets ( NPAs) and the restructured loan portfolio. Moody’s said these banks were particularly challenged by the prevailing operating environment, characterised by high inflation and high interest rates.

Source - http://www.business-standard.com