PSU banks fall on profit booking

In past one month, the CNX PSU Bank index has rallied 30% against less than 13% rise in CNX Nifty and Bank Nifty.

Shares of public sector undertaking (PSU) banks are under pressure falling by up to 6% on profit booking. Union Bank of India, Canara Bank, Oriental Bank of Commerce, Syndicate Bank, Allahabad Bank, Indian Overseas Bank (IOB) and Punjab National Bank (PNB) are down 3-6%, while IDBI, Bank of India, Andhra Bank, Bank of Baroda (BOB) and State Bank of India between 1-2% on the National Stock Exchange (NSE).

At 1050 hours, the CNX PSU Bank index, a gauge for state-owned banks, is down 2.4% compared to a 0.67% fall in CNX Nifty and 1.2% decline in Bank Nifty.

In past one month, the CNX PSU Bank index has rallied nearly 30% against less than 13% rise in CNX Nifty and Bank Nifty till yesterday.

Canara Bank, Syndicate Bank, Andhra Bank, Union Bank of India, Central Bank of India, IDBI Bank and Punjab and Sindh Bank have surged more than 60% each during the period on expectation of the improvement in macro-economic environment.

Among the individual stocks, Union Bank of India has dipped 6% to Rs 241 on the NSE. Oriental Bank of Commerce and Canara Bank are down 4% each at Rs 350 and Rs 473 respectively. Syndicate Bank, IOB, PNB, BOB and Allahabad Bank are down 3% each.