Nifty PSU Bank hits fresh 52-week low; BOB touches over 2-yr low of Rs 126

Nifty PSU Bank index hit a fresh 52-week low of 2,672 in the intra-day deal today, falling 26% in past four months as compared to 1.6% decline in Nifty 50 index.

Shares of public sector undertaking (PSU) banks are trading lower for the fourth straight trading days with Nifty PSU Bank index hitting fresh 52-week low on the National Stock Exchange (NSE) on Friday.

At 12:23 pm; Nifty PSU Bank index, the second largest loser among sectoral indices, was down 1.2% at 2,675 as compared to 0.39% decline in the Nifty 50 index at 10,642 points. The PSU Bank index hit a fresh 52-week low of 2,672 in the intra-day deal, has fallen 26% in past four months. In comparison, the benchmark index declined 1.6% during the same period.

The market value of most the public sector banks have declined in the range of 30% to 61% from their respective four-month high, mainly due to worries over increasing in non-performing assets (NPAs) and the negative sentiment post-Nirav Modi fraud at Punjab National Bank (PNB).

Out of 21 PSU banks, 13 banks thus far announced their March quarter results (Q4FY18) has reported a combined standalone net loss of Rs 340 billion as compared to Rs 21 billion in the same quarter last year.

PNB, the largest loser among the pack, tanked 61% from its four-month high of Rs 197 to close at Rs 76.45 on Thursday. The bank posted a record net loss of Rs 134 billion in Q4FY18 against a net profit of Rs 2.62 billion in previous year quarter.

Bank of Baroda (BOB) was down 3% to Rs 126, touching its lowest level since February 15, 2016, on the BSE in intra-day trade today. The stock plunged 30% from its four-month high of Rs 180 recorded on January 24, 2018.

State Bank of India (SBI) will declare its March quarter results on Tuesday, May 22, 2018, while BOB will announce its Q4FY18 results on Friday, May 25, 2018.

Meanwhile, according to a Business Standard report, the Centre may ask the Reserve Bank of India (RBI) to consider revising the prompt corrective action (PCA) framework so that a complete restriction on fresh lending does not affect credit flow to business, particularly small and medium enterprises.

Piyush Goyal, who recently assumed charge as finance minister till Arun Jaitley recovers from an operation, held a review meeting with the top management of 11 public sector banks under the PCA framework on Thursday.

Goyal described the present state of the public sector banks as a “legacy issue” and expressed confidence that banks will come out of the situation in a short time.

A government official said the capital requirement, under the second tranche of recapitalisation, will be decided after assessing the financial results of all the public sector banks for 2017-18, added report. CLICK HERE TO READ FULL REPORT

	4-month high		Price as on
Bank	Price	Date	17/05/2018	% chg
Punjab Natl.Bank	197.00	25/01/2018	76.45	-61
UCO Bank	36.65	25/01/2018	18.20	-50
Bank of India	183.25	25/01/2018	95.55	-48
Syndicate Bank	83.50	24/01/2018	44.80	-46
Allahabad Bank	74.00	25/01/2018	39.75	-46
Union Bank (I)	151.80	25/01/2018	85.15	-44
Oriental Bank	136.35	25/01/2018	78.85	-42
United Bank (I)	19.35	25/01/2018	11.20	-42
Bank of Maha	22.70	18/01/2018	13.15	-42
Dena Bank	27.85	25/01/2018	16.55	-41
Andhra Bank	59.40	25/01/2018	35.35	-40
Corporation Bank	41.70	18/01/2018	25.65	-38
Canara Bank	384.90	25/01/2018	239.90	-38
I O B	24.45	25/01/2018	16.25	-34
Pun. & Sind Bank	49.75	18/01/2018	33.75	-32
IDBI Bank	91.50	05/03/2018	62.55	-32
Bank of Baroda	179.70	24/01/2018	130.00	-28
St Bk of India	332.75	25/01/2018	242.70	-27
Indian Bank	406.00	24/01/2018	301.95	-26
Central Bank	87.90	16/03/2018	66.25	-25
Vijaya Bank	74.00	24/01/2018	58.75	-21