PSU Banks trade weak; PNB, Canara Bank down over 3%
At 09:30 am; the Nifty PSU Bank index, the largest loser among sectoral indices, down 2.2% erases its nearly entire 2.3% gain recorded on Tuesday.
 "PSU Banks trade weak; PNB, Canara Bank down over 3%")
premium
Shares of public sector undertaking (PSU) banks were trading lower by up to 4% on the National Stock Exchange (NSE) on Wednesday after a media report suggested that Punjab National Bank (PNB) told police that it has uncovered additional exposure of about Rs 9.42 billion in connection with a massive alleged fraud.
“The amounts of Rs 9.42 billion were the regular limits sanctioned to Geetanjali Group under consortium lending, and were standard credit exposure at the time of detection of the fraud. Now, this exposure is being added to the existing fraudulent amount. This amount has nothing to do with any new fraudulent letters of undertaking (LoUs) and letters of comfort (LoCs),” PNB said on a clarification on news report.
Meanwhile, the Reserve Bank of India (RBI) on Tuesday discontinued issuance of LoUs and LoCs for importers with immediate effect, in an attempt to prevent fraud such as the one allegedly carried out by jewellers Nirav Modi and Mehul Choksi.
Letters of credit (LCs) and guarantees will continue to be issued like before if they meet certain criteria. CLICK HERE TO READ FULL REPORT
“The amounts of Rs 9.42 billion were the regular limits sanctioned to Geetanjali Group under consortium lending, and were standard credit exposure at the time of detection of the fraud. Now, this exposure is being added to the existing fraudulent amount. This amount has nothing to do with any new fraudulent letters of undertaking (LoUs) and letters of comfort (LoCs),” PNB said on a clarification on news report.
Meanwhile, the Reserve Bank of India (RBI) on Tuesday discontinued issuance of LoUs and LoCs for importers with immediate effect, in an attempt to prevent fraud such as the one allegedly carried out by jewellers Nirav Modi and Mehul Choksi.
Letters of credit (LCs) and guarantees will continue to be issued like before if they meet certain criteria. CLICK HERE TO READ FULL REPORT
The stock of PNB dipped 4.4% to Rs 93.60 on the NSE in intra-day trade. Bank of India, Andhra Bank and Canara Bank were down more than 3%, while IDBI Bank, Allahabad Bank, Bank of Baroda, Oriental Bank of Commerce and Syndicate Bank down in the range of 2% to 3%.
At 09:30 am; the Nifty PSU Bank index, the largest loser among sectoral indices, down 2.2% erases its nearly entire 2.3% gain recorded on Tuesday. On comparison, the Nifty 50 index was trading lower 0.42% at 10,383.
| COMPANY | LATEST | PREV CLOSE | LOSS(%) |
| CANARA BANK | 242.45 | 252.15 | -3.85 |
| PUNJAB NATL.BANK | 94.30 | 98.00 | -3.78 |
| BANK OF INDIA | 99.10 | 102.20 | -3.03 |
| PUN. & SIND BANK | 34.75 | 35.75 | -2.80 |
| ALLAHABAD BANK | 46.65 | 47.90 | -2.61 |
| SYNDICATE BANK | 56.20 | 57.70 | -2.60 |
| UNION BANK (I) | 95.05 | 97.50 | -2.51 |
| IDBI BANK | 65.35 | 67.00 | -2.46 |
| ORIENTAL BANK | 93.10 | 95.40 | -2.41 |
| BANK OF BARODA | 138.00 | 141.40 | -2.40 |
| ANDHRA BANK | 38.60 | 39.45 | -2.15 |
| BANK OF MAHA | 14.75 | 15.05 | -1.99 |
| I O B | 17.95 | 18.30 | -1.91 |
| VIJAYA BANK | 54.40 | 55.40 | -1.81 |
| ST BK OF INDIA | 251.25 | 254.90 | -1.43 |
| DENA BANK | 19.10 | 19.35 | -1.29 |
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%