PSU bank stocks trade mixed

Public sector bank stocks were mixed at 12:06 IST on BSE on reports that the finance ministry has given public sector banks a 15-day deadline to take pre-emptive action, identify and address risks, and adopt best practices to tighten their systems.

Meanwhile, the S&P BSE Sensex was down 145.32 points or 0.42% at 34,201.07.

Bank of India (down 3.38%), Punjab National Bank (down 2.44%), State Bank of India (down 0.65%) and Bank of Baroda (down 0.6%) edged lower. Vijaya Bank (up 2.36%), Andhra Bank (up 1.78%), Indian Bank (up 0.61%) and Union Bank of India (up 0.49%) edged higher.

According to media reports, the finance ministry directed public sector banks (PSBs) to examine all bad loan accounts exceeding Rs 50 crore for possible fraud. The latest move comes in the aftermath of the Punjab National Bank (PNB) fraud. The bank had initially estimated the contingent liability at about Rs 11400 crore, but increased it by an additional Rs 1300 crore, in a filing to the stock exchanges on Monday, 26 February 2018.

The ministry also gave a 15-day deadline to PSBs to take pre-emptive action, identify and address operational and technological risks, and adopt best practices to tighten their systems, reports suggested.

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