Banks tumble after Cobrapost expose

Fourteen banks fell by 0.56% to 1.69% at 10:05 IST on BSE after investigative website Cobrapost released fresh set of secret recordings to expose irregularities in the Indian financial and banking system.

Punjab National Bank (down 1.69%), Canara Bank (down 1.66%), IndusInd Bank (down 1.61%), Yes Bank (down 1.33%), ICICI Bank (down 1.33%), HDFC Bank (down 1.22%), Axis Bank (down 1.16%), Kotak Mahindra Bank (down 1.1%), Bank of Baroda (down 0.92%), State Bank of India (down 0.86%), Bank of India (down 0.78%), Federal Bank (down 0.75%), Union Bank of India (down 0.62%) and IDBI Bank (down 0.56%), edged lower.

The S&P BSE Bankex was down 1.44% at 13,979.26. It underperformed the S&P BSE Sensex, which was almost flat at 19,584.49.

The S&P BSE Bankex tumbled 2.40% to 14183.60 on Friday, 3 May 2013. The Reserve Bank of India (RBI) on Friday, 3 May 2013, cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing.

The S&P BSE Bankex had outperformed the market over the past one month till 3 May 2013, rising 8.81% compared with the Sensex's 4.12% rise. The index had, however, underperformed the market in past one quarter, falling 1.95% as against Sensex's 1.04% fall.

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