FIIs cherry-pick PSU banks in March quarter

Foreign investors appear not to be enthused with prevailing positive sentiments for the state-owned banks. At a time when most market participants are talking high about PSU lenders, Foreign Institutional Investors (FIIs) cherry picked a few while they continued to trim their positions in majority of the banks.

They have been quite selective in raising holdings in public sector lenders which have continuously been under pressure on the back of rising non-performing assets (NPAs). Not only have they remained cautious on state-owned lenders but had the same stance when it came to private lenders, shares of which have already had good rally on the bourses.

Banks on Foreign Institutional Investors (FIIs)'s radar are India's largest lenders which include State Bank of India (SBI) and Bank of Baroda (BoB). Both the state-owned entities have witnessed an increased FIIs' holdings in the latest share holding pattern disclosed by banks.

On the stock exchanges, shares of SBI have run up close to 40% since it touched its 52-week lows while those of BoB rallied over 45%.

For instance, in Bank of Baroda FIIs raised stake marginally by 8 basis points or bps (one basis point is hundredth of a percentage point) to 15.62 pe rcent while SBI could see a reasonable hike of 66 bps to 9.68%. Punjab National Bank (PNB), in which FIIs holding is the highest, is yet to declare its latest share holding pattern. Stocks of PNB have almost doubled after it hit its year low.

However, FIIs largely stayed away from mid and small-sized state lenders - majority of which saw foreign investors slashing exposures. Be it Syndicate Bank, Dena Bank, Union Bank, Canara Bank, Bank of India, Central Bank or Indian Overseas Bank - FIIs trimmed their positions during the quarter ended March, 2014.

Interestingly, shares of entities like IDBI, Andhra and Oriental Bank of Commerce were picked up by FIIs.

Among the top private lenders, ICICI Bank and IndusInd Bank could see FIIs raising stake during the quarter. On the other hand they pared holdings in HDFC Bank and Kotak Mahindra Bank. Axis Bank and YES Bank are yet to declare their share holding pattern.

FIIs cherry-pick PSU banks in March quarter

Trim positions in majority of the state-owned lenders

BS REPORTER

Mumbai, 12 April

Foreign investors appear not to be enthused with prevailing positive sentiments for the state-owned banks. At a time when most market participants are talking high about PSU lenders, Foreign Institutional Investors (FIIs) cherry picked a few while they continued to trim their positions in majority of the banks.

They have been quite selective in raising holdings in public sector lenders which have continuously been under pressure on the back of rising non-performing assets (NPAs). Not only have they remained cautious on state-owned lenders but had the same stance when it came to private lenders, shares of which have already had good rally on the bourses.

Banks on Foreign Institutional Investors (FIIs)'s radar are India's largest lenders which include State Bank of India (SBI) and Bank of Baroda (BoB). Both the state-owned entities have witnessed an increased FIIs' holdings in the latest share holding pattern disclosed by banks.

On the stock exchanges, shares of SBI have run up close to 40% since it touched its 52-week lows while those of BoB rallied over 45%.

For instance, in Bank of Baroda FIIs raised stake marginally by 8 basis points or bps (one basis point is hundredth of a percentage point) to 15.62 pe rcent while SBI could see a reasonable hike of 66 bps to 9.68%. Punjab National Bank (PNB), in which FIIs holding is the highest, is yet to declare its latest share holding pattern. Stocks of PNB have almost doubled after it hit its year low.

However, FIIs largely stayed away from mid and small-sized state lenders - majority of which saw foreign investors slashing exposures. Be it Syndicate Bank, Dena Bank, Union Bank, Canara Bank, Bank of India, Central Bank or Indian Overseas Bank - FIIs trimmed their positions during the quarter ended March, 2014.

Interestingly, shares of entities like IDBI, Andhra and Oriental Bank of Commerce were picked up by FIIs.

Among the top private lenders, ICICI Bank and IndusInd Bank could see FIIs raising stake during the quarter. On the other hand they pared holdings in HDFC Bank and Kotak Mahindra Bank. Axis Bank and YES Bank are yet to declare their share holding pattern.