In an interview to CNBC-TV18, MV Nair, CMD, Union Bank throws some light why Moody's has downgraded Union Bank. He feels gross NPAs, low provision cover and capital adequacy are three key areas which led to the downgrade.
He also mentions that he is hopeful that Union Bank's profitability will improve by next year, which will provide adequate cover. He is also optimistic that by next year the bank will get an upgrade from Moody's.
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