ALSO READPSU banks in focus; PNB, Oriental Bank, Syndicate Bank up over 5% PSU banks in focus; Bank of Baroda, PNB, Bank of India up over 4% PSU banks extend gains; Nifty PSU Bank index up 10% in six trading days Nifty PSU Bank index records second biggest fall in 2018; PNB slips 10% PSBs in focus; Andhra Bank, Syndicate Bank, PNB up 5%
Including PNB, Allahabad Bank, Bank of Maharashtra, Corporation Bank, Dena Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Syndicate Bank, UCO Bank, Union Bank of India 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; Nifty PSU Bank 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 Nifty PSU Bank 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. PNB has seen its market value fallen by 25%, followed Allahabad Bank (down 14%), Syndicate Bank, Bank of India, Bank of Baroda and Union Bank of India were down 12% on the BSE.
“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,” Allahabad Bank said in a regulatory filing to the BSE on Friday. The bank has also purchased some buyers’ credit assets from Axis Bank extended against PNB 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, Union Bank of India 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).
|BANK||LATEST||52 WK LOW||PREV LOW||PREV DATE|
|BANK OF MAHA||17.85||17.75||18.35||16-Feb-18|
|PUN. & SIND BANK||38.55||38.20||38.55||06-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|