Canara Bank, Bank of India, Andhra Bank hit 52-week lows

Shares of four state-owned banks - Canara Bank, Bank of India, Andhra Bank and Bank of Maharashtra – hit their respective 52-week lows on the National Stock Exchange (NSE) in otherwise firm market. At 10:23 am; Nifty PSU Bank index was trading 0.1% lower as compared to 0.52% rise in the benchmark S&P BSE Sensex.

Five public sector banks (PSBs), including Canara Bank and Andhra Bank, are on the brink of being put under the Reserve Bank of India’s (RBI’s) prompt corrective action (PCA) plan. According to rating agency Icra, their net non-performing assets (NPAs) rose above 6% in December 2017. CLICK HERE TO READ FULL REPORT

Canara Bank hit a fresh 52-week low of Rs 277, down 1% today, extending its 6% decline in past two trading days, after the bank, authorisation by a consortium of lenders, has made a complaint to the Central Bureau of Investigation (CBI) against a Kolkata-based computer assembler-integrator, R P Infosystems, alleging an Rs 5.15 billion fraud.

Canara Bank said in a regulatory filing, “Under a consortium arrangement of 17 banks, Canara Bank financed working capital limit of Rs 400 million (4.69% of the loan). The leader bank has already filed a case with the CBI in 2015. Consequent, upon the leader bank relinquishing its role as the leader of the consortium, and as directed by the CBI, Kolkata, we were authorised by the remaining member banks to file a revised complaint with the CBI, which we have filed on 26.2.2018.”

Meanwhile, in past one month, most the PSU banks have underperformed the market by falling more than 10% against 1.4% decline in Nifty 50 index.

BANK	LATEST	ONE-MONTH BEFORE	LOSS(%)
PNB	100.10	160.45	-37.61
BANK OF INDIA	109.15	142.65	-23.48
UNION BANK (I)	100.25	125.25	-19.96
BANK OF MAHA	15.65	19.10	-18.06
ALLAHABAD BANK	50.35	58.90	-14.52
CANARA BANK	278.50	318.10	-12.45
UCO BANK	25.65	28.70	-10.63