Business Standard

SBI shares plunge 8% on Kingfisher loan

Related News

Shares of of India (SBI) plunged sharply by over 8% today, on concerns about its exposure to Kingfisher Airlines and reports about public sector lender giving fresh loans to the debt-ridden carrier.

Shares of Kingfisher also plunged by over 6% on continuing financial and operational troubles at the company.

Heavy selling was witnessed in shares, pulling it by 8.55% to an intra-day low of Rs 2,242 on the Bombay Stock Exchange. After paring some of the losses, the stock settled 7.91% lower at Rs 2,257.80.

SBI was also a major contributed to the 283-point plunge in the barometer index Sensex today.

At the NSE, the stock closed 8.13% down at Rs 2,252.95.

"Sentiments turned adverse for the SBI counter on reports that the bank has committed close to Rs 1,200 crore to the problem stricken Kingfisher airlines," Shanu Goel Research Analyst Bonanza Portfolio said.

Already, SBI has a significant exposure to Kingfisher and is among the biggest lenders to the cash-strapped airline.

Share of two other lenders IDBI Bank and PNB, which have significant exposure in the ailing carrier, also plunged by 6.92% and 4.62%, respectively.

Shares of Kingfisher Airlines also dropped after trading higher for most part of the session. The scrip closed the day 6.53% lower at Rs 25.05.

A consortium of lenders is believed to be considering fund support to the beleaguered carrier, but a final decision has remained elusive so far.

The airline's services remained affected for the sixth day today as it cancelled about 20 flights.

Kingfisher, which suffered a loss of Rs 1,027 crore in 2010-11 and has a debt of Rs 7,057.08 crore, posted a Rs 444 crore loss in third quarter this fiscal.

Read more on:   
|
|
|

Read More

M&M gains on post February sales numbers

The company reported 11% year-on-year growth in its auto sales numbers at 47,824 units in February 2013.

Quick Links

 

Market News

Adani stocks led the way in Samvat 2070

Ambani brothers, JSPL the bottom three in market-cap growth

Raising the output key to Cairn India's prospects

With crude oil prices benign, increasing oil and gas production is crucial to drive growth

Biocon sees muted quarter, lacks immediate triggers

Reduced exports to West Asia & North Africa, capacity constraints affect sales

Exchanges plan stake sales in depository arms

NSE in talks with investors for offloading stake, BSE considering an IPO; to do so before April

Many listed firms had same auditors for over 10 yrs: IIAS

Proxy advisory body Institutional Investor Advisory Services India (IIAS) has called for periodic rotation of auditors and capping their tenure ...

Back to Top