Bank of India falls after S&P revises outlook to negative

Indian Overseas, Indian Bank, Corporation Bank, PNB, Oriental Bank and Canara Bank were down 3%-5%.

Shares of Bank of India have dipped 6.5% to Rs 80.10, the lowest level since July 2006 on the BSE, after S&P Ratings revised the outlook on the bank to negative.

The rating agency sees the asset quality of the state-run lender weakening over 12-18 months, straining its profitability. CLICK HERE TO READ FULL REPORT.

At 09:56 AM, the stock was down 5.4% to Rs 81.05 on the BSE. A combined 2.02 million equity shares changed hands on the counter on the BSE and NSE.

S&P BSE Bankex was down 1.6% or 262 points at 15,820 as compared to 1% or 230 points decline in S&P BSE Sensex at 22,961.

Among the other public sector banks, Indian Overseas Bank, Indian Bank, Corporation Bank, Punjab National Bank, Oriental Bank of Commerce, Canara Bank, Union Bank of India, IDBI Bank and Allahabad Bank and Syndicate Bank were down 3%-5%.