PSU Bank extends fall; 11 out of 22 banks hit 52-week lows

Shares of public sector banks were continue under pressure with the 11 out of 22 listed state-owned bank hit their respective 52-week lows on the BSE as financials succumbed to selling pressure on worries of the Rs 114 billion fraud case at Punjab National Bank (PNB).

Including PNB, Allahabad Bank, Bank of Maharashtra, Corporation Bank, Dena Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Syndicate Bank, UCO Bank, Union Bank of India and Untied Bank of India have hit their respective 52-week low on the BSE in intra-day trade on Monday.

At 10:23 am; Nifty PSU Bank index, the largest loser among sectoral indices, was down 2%, as compared to 0.6% fall in Nifty 50 index. In past four trading sessions, the Nifty PSU Bank index slipped 10% against 1.4% decline in the benchmark index.

During the period, total market capitalisation of 22 PSU banks declined by Rs 457 billion from Rs 4,792 billion to Rs 4,335 billion. PNB has seen its market value fallen by 25%, followed Allahabad Bank (down 14%), Syndicate Bank, Bank of India, Bank of Baroda and Union Bank of India were down 12% on the BSE.

Allahabad Bank and Union Bank of India said that they have collectively an exposure of $ 666.87 million in the PNB fraud case.

Allahabad Bank has said it has an exposure of $366.87 million (approximately Rs 23.63 billion) in the PNB fraud case. The bank is fully secured by Letters of Undertakings (LoU) documents and fully confident to receive the payment.

“The bank, through our overseas branch at Hong Kong, has been taking exposure with Punjab National Bank as counter-party under various Letters of Undertakings issued through authenticated SWIFT message,” Allahabad Bank said in a regulatory filing to the BSE on Friday. The bank has also purchased some buyers’ credit assets from Axis Bank extended against PNB LoUs through risk participation.

The outstanding exposure related to the incident is approximately $300 million (Rs 19.15 billion) and the Bank is fully secured by LoU / LC / Other Documents and fully confident to receive the payment, Union Bank of India said in a regulatory filing.

Meanwhile, last week, as the Reserve Bank of India announced rules around bank loan defaults and abolishing a number of existing loan-restructuring mechanisms to create a “harmonised and simplified generic framework” to resolve non-performing assets (NPAs).

BANK	LATEST	52 WK LOW	PREV LOW	PREV DATE
ALLAHABAD BANK	51.50	51.05	53.10	15-Feb-18
BANK OF MAHA	17.85	17.75	18.35	16-Feb-18
CORPORATION BANK	32.55	32.30	32.95	16-Feb-18
DENA BANK	21.00	20.85	21.15	16-Feb-18
ORIENTAL BANK	102.60	102.60	102.65	15-Feb-18
PUN. & SIND BANK	38.55	38.20	38.55	06-Feb-18
PUNJAB NATL.BANK	119.20	118.25	120.60	16-Feb-18
SYNDICATE BANK	56.80	56.70	58.95	16-Feb-18
UCO BANK	26.20	25.20	28.30	16-Feb-18
UNION BANK (I)	110.85	110.60	116.10	16-Feb-18
UNITED BANK (I)	14.45	14.40	14.60	06-Feb-18