PNB, Allahabad Bank, Central Bank, Dena Bank hit 52-week low on weak Q3 results

Uco Bank, Indian Overseas, Andhra Bank, BOI, Union Bank, BOB, Syndicate Bank, Oriental Bank and United Bank of India were down 3%-7% on the BSE.

Shares of public sector banks (PSBs) such as Punjab National Bank (PNB), Allahabad Bank, Central Bank of India (CBI) and Dena Bank have hit their respective 52-week lows after these banks reported a weak set of numbers for the quarter ended December 31, 2015 (Q3FY16).

Central Bank of India has tanked 13% to Rs 53.75 on the BSE after the bank reported a net loss of Rs 837 crore in Q3FY16, against a net profit of Rs 138 crore in previous year quarter. Gross net performing assets (NPAs) moved up to 8.95% from 6.2% a year ago.

Allahabad Bank plunged 10% to Rs 45.40 after the bank posted a net loss of Rs 486 crore against a net profit of Rs 164 crore in the year-ago period.

PNB slipped 6% to Rs 82.45, extending 7% previous day’s fall after the bank reported a net profit of Rs 51 crore on tax benefit of about Rs 908 crore. It had posted a net profit of Rs 774 core in the third quarter of 2014-15. During the quarter the bank recognised loans worth over Rs 5,000 crore from the RBI’s Asset Quality Review accounts as NPA and hence the overall rise in NPAs.

PNB’s asset quality deteriorated further as gross NPAs or bad loans hit 8.47% of gross advances during the quarter, against 5.97% a year ago. Net NPAs rose to 5.86% of net advances, from 3.82%.

The broking firm Angel Broking expects asset quality to stabilise any time soon for the bank.

Dena Bank dipped 5% to Rs 29.40, after falling 12% yesterday on the BSE. The company reported a loss of Rs 662 crore against a net profit of Rs 77 crore in October-December 2014.

Uco Bank, Indian Overseas Bank, Andhra Bank, Bank of India, Union Bank of India, Bank of Baroda, Syndicate Bank, Oriental Bank of Commerce and United Bank of India were down 3%-7% on the BSE.

At 09:47 AM, the S&P BSE Bankex index was down 1.6% or 271 points at 16,593 against 0.89% or 213 points decline in S&P BSE Sensex. The banking index hit a 52-week low of 16,580 in intra-day trade.