New Delhi: Failure of banking sector is also one of the reasons for the ongoing recession in the country. The industry is accused of banks not giving loans for business. Banks have deteriorated due to NPAs. Public sector bank PNB has suffered a major loss. But there is relief news for PNB. Global ratings agency Moody's on Wednesday improved the outlook of Punjab National Bank from 'stable' to 'positive'.

Finance Minister Nirmala Sitharaman had announced that Oriental Bank of Commerce (OBC) and United Bank of India would be merged with Punjab National Bank. Moody's has also reaffirmed Canara Bank, OBC, Syndicate Bank and Union Bank's rating of local and foreign currency deposits to BAA3P-3. Moody's Investors Service has said that it has maintained the PNB's rating of local and foreign currency deposits to BA1NP.

Along with this, the agency is also firm on the basic credit line assessment of the bank. The agency has also kept the scenario of Canara Bank, OBC, Syndicate Bank and Union Bank stable. Moody's says that after the government injects new capital into the bank, the bank's base loan assessment (BCA) will improve and overall the bank's financial position will improve gradually.

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