STOCK MARKET BSE NSE

No relief: Nifty PSU Bank index hits 19-month low after multi-crore PNB scam

Public sector banks are unlikely to get a breather. On Monday, as more bad news tumbled out, the Nifty PSU Bank index hit a 19-month low.

Published: 13th March 2018 02:22 AM  |   Last Updated: 13th March 2018 07:22 AM   |  A+A-

Pedestrians walk past a Punjab National Bank office in Mumbai. (Photo | Reuters)

By Express News Service

MUMBAI: Public sector banks are unlikely to get a breather. On Monday, as more bad news tumbled out, the Nifty PSU Bank index hit a 19-month low.

Owing to intense selling pressure amid reports of Union Bank of India’s (UBI) credit exposure to Nirav Modi and Mehul Choksi firms, shares of state-run banks were battered, with the Nifty PSU Bank index slipping 2.2 per cent to Rs 2,794 during early trade.

This was lower than the levels last seen on August 8, 2016. Unconfirmed reports pegged UBI’s exposure to the two jewelers at Rs 3,000 crore.

The Nifty PSU Bank index slipped 2.2 per cent and it was the lone loser among sectoral indices as against the Nifty 50 index. However, it regained some ground to close the day in green.

After the PNB loan fraud last month, the index plunged 20 per cent, while most of the 21 listed state-run banks saw steep price falls in excess of 30 per cent in the past 30 days.

If this wasn’t enough, shares of banks like Andhra Bank touched a five-year low on Monday.

The tumbling share prices have been a drag on the overall market capitalization (m-cap) of banks with the sector losing a staggering Rs 90,000 crore in the past one month to end at Rs 3,84,600 crore on Monday as against the Rs 4,75,300 crore as on February 12, 2018.

The SBI emerged as the largest loser in absolute terms, with a m-cap erosion by Rs 33,900 billion at Rs 2,15,200 crore, followed by PNB at Rs 1,67,00 crore, Bank of Baroda Rs 9,100 crore, and Bank of India Rs 6,200 crore.

More from Business.

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp