Bank Nifty hits 3-month low, down 3%

SBI, ICICI Bank, PNB, Axis Bank and BoB are down by 4-6%

Banking stocks are under pressure for the second day in a row after the Reserve Bank of India (RBI) released the final guidelines regarding the Basel-3 norms on May 2.

The banks will have also to achieve a minimum Core Equity Tier-I capital adequacy (CET1) of 5% by FY2014, which in a staggered manner will then have to be increased to 8% by FY2018.

The bank Nifty, which tracks the movement of banking shares, hits three-month low is down by 3% at 9,835 points, compared with less than 2% fall in the benchmark index Nifty in late noon trades. In past two trading days, the lost 472 points.

Among the individual stocks State Bank of India, ICICI Bank, Punjab National Bank, Axis Bank and Bank of Baroda are trading lower by 4-6% on the National Stock Exchange (NSE).

“The immediate impact is restricted to few smaller banks. However, in the medium-term the Basel 3 guidelines imply significant capital shortage for the Indian Banking system,” Angel Broking said in a recent report.

By the end of FY2018, as the minimum CET1 requirement itself moves to 8%, the research firm is believe most of the banks would look to maintain closer to 9-10% CET1 capital adequacy.

image
Business Standard
177 22
Business Standard

Bank Nifty hits 3-month low, down 3%

SBI, ICICI Bank, PNB, Axis Bank and BoB are down by 4-6%

SI Reporter  |  Mumbai 

Banking stocks are under pressure for the second day in a row after the Reserve Bank of India (RBI) released the final guidelines regarding the Basel-3 norms on May 2.

The banks will have also to achieve a minimum Core Equity Tier-I capital adequacy (CET1) of 5% by FY2014, which in a staggered manner will then have to be increased to 8% by FY2018.

The bank Nifty, which tracks the movement of banking shares, hits three-month low is down by 3% at 9,835 points, compared with less than 2% fall in the benchmark index Nifty in late noon trades. In past two trading days, the lost 472 points.

Among the individual stocks State Bank of India, ICICI Bank, Punjab National Bank, Axis Bank and Bank of Baroda are trading lower by 4-6% on the National Stock Exchange (NSE).

“The immediate impact is restricted to few smaller banks. However, in the medium-term the Basel 3 guidelines imply significant capital shortage for the Indian Banking system,” Angel Broking said in a recent report.

By the end of FY2018, as the minimum CET1 requirement itself moves to 8%, the research firm is believe most of the banks would look to maintain closer to 9-10% CET1 capital adequacy.

RECOMMENDED FOR YOU

Bank Nifty hits 3-month low, down 3%

SBI, ICICI Bank, PNB, Axis Bank and BoB are down by 4-6%

Banking stocks are under pressure for the second day in a row after the Reserve Bank of India (RBI) released the final guidelines regarding the Basel-3 norms on May 2. The banks will have also to achieve a minimum Core Equity Tier-I capital adequacy (CET1) of 5% by FY2014, which in a staggered manner will then have to be increased to 8% by FY2018. The bank Nifty, which tracks the movement of banking shares, hits three-month low is down by 3% at 9,835 points, compared with less than 2% fall in

Banking stocks are under pressure for the second day in a row after the Reserve Bank of India (RBI) released the final guidelines regarding the Basel-3 norms on May 2.

The banks will have also to achieve a minimum Core Equity Tier-I capital adequacy (CET1) of 5% by FY2014, which in a staggered manner will then have to be increased to 8% by FY2018.

The bank Nifty, which tracks the movement of banking shares, hits three-month low is down by 3% at 9,835 points, compared with less than 2% fall in the benchmark index Nifty in late noon trades. In past two trading days, the lost 472 points.

Among the individual stocks State Bank of India, ICICI Bank, Punjab National Bank, Axis Bank and Bank of Baroda are trading lower by 4-6% on the National Stock Exchange (NSE).

“The immediate impact is restricted to few smaller banks. However, in the medium-term the Basel 3 guidelines imply significant capital shortage for the Indian Banking system,” Angel Broking said in a recent report.

By the end of FY2018, as the minimum CET1 requirement itself moves to 8%, the research firm is believe most of the banks would look to maintain closer to 9-10% CET1 capital adequacy.

image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

Widgets Magazine

More News

STOCK WATCH

Company Price() Chg(%)
Tata Motors-DVR 311.65 10.83
Mahindra CIE 212.40 9.46
Tata Motors 458.20 8.95
Lycos Internet 19.90 8.45
Claris Lifescien 218.20 8.07
> More on BSE Gainers
Company Price() Chg(%)
Tata Motors-DVR 314.50 11.74
Mahindra CIE 213.80 10.21
Tata Motors 459.65 9.12
Grindwell Norton 678.85 7.55
Canara Bank 206.40 7.00
> More on NSE Gainers
Company Price() Chg(%)
Tree House Edu. 59.70 -15.62
Rolta India 71.80 -8.30
GVK Power Infra. 4.71 -7.65
Hitachi Home 1293.95 -7.59
Dynamatic Tech. 2492.65 -6.84
> More on BSE Gainers
Company Price() Chg(%)
Tree House Edu. 59.50 -16.02
GVK Power Infra. 4.65 -8.82
Rolta India 71.75 -8.54
Hitachi Home 1285.30 -7.96
Vaibhav Global 239.50 -7.44
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard