PNB's capital position to deteriorate if it has to provide for full exposure: Moody's

In an interview to CNBC-TV18, Alka Anbarasu, VP-Financial Institutions Group at Moody's Investors Service spoke about placing Punjab National Bank’s (PNB) rating under review for a downgrade.

Anbarasu we have placed ratings under review for downgrade because we think that the financial implications of this fraudulent transaction could be severe and that would depend on quantum and timing of the hit that PNB will need to take.

She further said that depending on the provisions the bank takes, its capital position could also come under pressure.

Talking about banking sector, we have considered the risk of this type of transactions emerging with other banks and may not just be restricted to public sector banks.

For entire interview, watch accompanying video.