Rs 1.43 lakh crore erosion in banks, NBFCs M-Cap

As many as 50 listed banks and non-banking financial companies (NBFCs) saw a sharp value erosion of their scrip’s in the last quarter of the current financial year.

Published: 30th March 2013 09:49 AM  |   Last Updated: 30th March 2013 10:32 AM   |  A+A-

As many as 50 listed banks and non-banking financial companies (NBFCs) saw a sharp value erosion of their scrip’s in the last quarter of the current financial year. Both banks and NBFCs together have lost nearly Rs 1.43 lakh crore in their market capitalisation (M-Cap).

The biggest loser among these has been state-run banking major SBI with a loss of over Rs 23, 000 crore in the current quarter  followed by private lenders HDFC Bank and ICICI Bank with losses of over Rs 13,000 crore and Rs 12,000 crore respectively.

The estimated 14 per cent percentage loss in the market value of banking and non-banking financial companies NBFCs is much higher than the overall plunge of less than eight per cent across the stock market between January and March 2013.

While two days are still left in the current fiscal the stock markets would now resume trading in the next financial year on April 1.

An analysis of stock movements of about 50 listed banks and NBFCs during the current quarter shows that their cumulative market cap has plunged by Rs 1,43,682 crore since January 1, 2013 to end the fiscal at Rs 10,44, 400 crore.

Incidentally, this three-month period saw many significant developments regarding the banking and NBFC sectors. While RBI came out with its final guidelines for grant of new banking licenses, a sting operation also claimed major lapses regarding the money laundering controls at three leading private banks.

All the public sector banks and NBFC together lost more than Rs 85,000 crore of market value  followed by a loss of over Rs 33,000 crore by the private banks and Rs 25,000 crore for the private sector NBFCs during the last quarter.

The other PSU banks that saw sharp value erosion include Bank of Baroda, PNB, Canara and IDBI bank. The biggest losers among the private sector NBFCs are IDFC and Reliance Capital with losses of over Rs 4,000 crore each, while L&T Finance, Bajaj Finserv, M&M Financial Services, Shriram Transport, IFCI,  HDFC, Muuthoot Finance and Mannapuram Finance are among the other major losers.

Among the private banks Kotak Mahindra Bank is among the few to have actually witnessed a marginal increase in market values during this period. Other private banks that shed market value include Axis Bank, Yes Bank and Karnataka Bank.

In the public sector, banks that suffered significant erosion in their market values include UCO bank, Oriental Bank of Commerce, Indian Overseas Bank, Allahabad Bank, LIC Housing Finance, Union Bank of India, Rural Electrification Corp and Power Finance C orporation.

(With agency inputs)

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