Ananda Bhoumik of India Ratings & Research however, does not feel that there is a likelihood of a ratings downgrade of banks at this stage. He acknowledges the fact that asset quality problems mainly persist with mid-sized public sector banks and believes Canara Bank is going through a turbulent phase at the moment.

No major asset quality concerns for PSU banks: Canara Bank

S Raman, chairman and managing director of Canara Bank, tells CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee that he doesn't see any concerns over asset quality as far as public sector banks (including Canara Bank) are concerned.

In focus: Will banks pass RBI's 25 bps rate hike to you?

MV Nair, CMD, Union Bank says credit growth is falling but deposit rates are still very high. He expects to pass on the rate increases by the second half of FY12. Romesh Sobti, MD and CEO of IndusInd Bank says they have already passed on a 25 bps rate hike to their customers.

Canara Bank hints to pass lending rates, doubts on deposits

Speaking exclusively to CNBC-TV18, S Raman, chairman and managing director of Canara Bank says that the central bank is most likely to go ahead with a 50 bps rate hike for the year, post Thursday's expected 25 bps. He says, “I expect RBI to bring a 75 basis-points rate hike in the rest of the months of this financial year.”

Capital adequacy was more than 13% before QIP: Canara Bank

Canara Bank successfully closed up a Qualified Institutional Placement (QIP) that raised Rs 1993 crore. In an exclusive interview with CNBC-TV18’s Udayan Mukherjee and Mitali Mukherjee, S Raman chairman and managing director of Canara Bank shares the details of the QIP.