You are here: Home » Markets » News
Business Standard

PSU Bank extends fall; 11 out of 22 banks hit 52-week lows

In past four trading sessions, the Nifty PSU Bank index slipped 10% against 1.4% decline in the benchmark index.

SI Reporter  |  Mumbai 

insolvency, NPAs, banks, mutual fund, debt, loan

Shares of public sector banks were continue under pressure with the 11 out of 22 listed state-owned bank hit their respective 52-week lows on the BSE as financials succumbed to selling pressure on worries of the Rs 114 billion fraud case at Punjab National Bank (PNB).

Including PNB, Allahabad Bank, Bank of Maharashtra, Corporation Bank, Dena Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Syndicate Bank, UCO Bank, and Untied Bank of India have hit their respective 52-week low on the BSE in intra-day trade on Monday.

At 10:23 am; index, the largest loser among sectoral indices, was down 2%, as compared to 0.6% fall in Nifty 50 index. In past four trading sessions, the index slipped 10% against 1.4% decline in the benchmark index.

During the period, total market capitalisation of 22 PSU banks declined by Rs 457 billion from Rs 4,792 billion to Rs 4,335 billion. has seen its market value fallen by 25%, followed (down 14%), Syndicate Bank, Bank of India, Bank of Baroda and were down 12% on the BSE.

and said that they have collectively an exposure of $ 666.87 million in the fraud case.

has said it has an exposure of $366.87 million (approximately Rs 23.63 billion) in the fraud case. The bank is fully secured by Letters of Undertakings (LoU) documents and fully confident to receive the payment.

“The bank, through our overseas branch at Hong Kong, has been taking exposure with Punjab National Bank as counter-party under various Letters of Undertakings issued through authenticated SWIFT message,” said in a regulatory filing to the BSE on Friday. The bank has also purchased some buyers’ credit assets from Axis Bank extended against LoUs through risk participation.

The outstanding exposure related to the incident is approximately $300 million (Rs 19.15 billion) and the Bank is fully secured by LoU / LC / Other Documents and fully confident to receive the payment, said in a regulatory filing.

Meanwhile, last week, as the Reserve Bank of India announced rules around bank loan defaults and abolishing a number of existing loan-restructuring mechanisms to create a “harmonised and simplified generic framework” to resolve non-performing assets (NPAs).

ALLAHABAD BANK 51.50 51.05 53.10 15-Feb-18
BANK OF MAHA 17.85 17.75 18.35 16-Feb-18
CORPORATION BANK 32.55 32.30 32.95 16-Feb-18
DENA BANK 21.00 20.85 21.15 16-Feb-18
ORIENTAL BANK 102.60 102.60 102.65 15-Feb-18
PUN. & SIND BANK 38.55 38.20 38.55 06-Feb-18
PUNJAB NATL.BANK 119.20 118.25 120.60 16-Feb-18
SYNDICATE BANK 56.80 56.70 58.95 16-Feb-18
UCO BANK 26.20 25.20 28.30 16-Feb-18
UNION BANK (I) 110.85 110.60 116.10 16-Feb-18
UNITED BANK (I) 14.45 14.40 14.60 06-Feb-18

First Published: Mon, February 19 2018. 10:59 IST