7 public sector bank stocks hit 52-week lows on Rs 114-bn PNB fraud case

UCO Bank slipped 4.58%, Dena Bank - 4.43% and Oriental Bank of Commerce - 1.71%

Bank stocks continued to face selling pressure on Monday with many hitting their 52-week lows and plunging by up to 7 per cent amid concerns over the Rs 114 billion PNB fraud involving billionaire diamantaire Nirav Modi.

Shares of Union Bank of India dropped 7.19 per cent; Bank of Maharashtra — 6.79 per cent, Syndicate Bank — 6.45 per cent, Allahabad Bank — 6.30 per cent and Bank of Baroda — 5.48 per cent on BSE.

Among others, UCO Bank slipped 4.58 per cent, Dena Bank — 4.43 per cent and Oriental Bank of Commerce — 1.71 per cent.

Among those which hit their 52-week lows during the day, falling by up to 11 per cent, included Bank of Maharashtra, Union Bank of India, Syndicate Bank, UCO Bank, Allahabad Bank, Oriental Bank of Commerce and Dena Bank.

"PSU banks are likely to remain under pressure due to the current irregularities while participants are taking a wait and watch approach until the storm settles," said Vinod Nair, Head of Research, Geojit Financial Services Ltd. Meanwhile, sentiment at BoB counter also remained muted after a case was filed on its complaint against Kanpur-based Rotomac Global Pvt Limited, its director Vikram Kothari, his wife Sadhana Kothari, and son Rahul Kothari and unidentified bank officials .

The CBI has registered a case against Rotomac pen promoter Vikram Kothari and his family in connection with a case related to the alleged swindling of Rs 36.95 billion of bank loan funds, officials said here today.

The scam was earlier estimated at around Rs 8 billion. Union Bank of India had on Thursday said it has an exposure of Rs 19 billion to the PNB fraud case.

Most of the public sector lenders saw prices of their stocks tumble last week also after the alleged PNB fraud came to light.