Sbi Hits 3-Yr Low On Bse

The State Bank of India scrip yesterday touched a three-year low of Rs 166.40 on the Bombay Stock Exchange. The stock has almost reached it's all-time low of Rs 152.

The scrip touched and closed at the lower end of the circuit breaker, down 8 per cent since yesterday. It has fallen over 15 per cent since Monday.

Other banking scrips like Bank of Baroda, Corporation Bank, Bank of India and Dena Bank have also come under heavy selling pressure in the past 10 to 15 days. Market sources attribute this to growing concern about non-performing assets.

Bank of Baroda has come down by nearly 20 per cent in the past 10 to 15 trading sessions and is hitting its all-time low on a daily basis. The scrip is trading at a hefty discount to its offer price of Rs 95 per share. Corporation Bank has also come down by about 14 per cent and is nearing its offer price of Rs 80 per share.

Indices reflect the banking sector's woes. In the past six months, The Business Standard Smart Investor Public Sector Bank index has dipped 45 per cent and The Business Standard Smart Investor Private Sector Bank Index 31 per cent while the sensex has dropped about 25 per cent.