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Nifty PSU Bank hits fresh 52-week low; BOB touches over 2-yr low of Rs 126

Nifty PSU Bank index hit a fresh 52-week low of 2,672 in the intra-day deal today, falling 26% in past four months as compared to 1.6% decline in Nifty 50 index.

SI Reporter  |  Mumbai 

PCA shadow on PNB, Canara, Union Bank; DFS to meet 11 executives today

Shares of public sector undertaking (PSU) banks are trading lower for the fourth straight trading days with PSU Bank index hitting fresh 52-week low on the National Stock Exchange (NSE) on Friday.

At 12:23 pm; PSU Bank index, the second largest loser among sectoral indices, was down 1.2% at 2,675 as compared to 0.39% decline in the 50 index at 10,642 points. The PSU Bank index hit a fresh 52-week low of 2,672 in the intra-day deal, has fallen 26% in past four months. In comparison, the benchmark index declined 1.6% during the same period.

The market value of most the public sector banks have declined in the range of 30% to 61% from their respective four-month high, mainly due to worries over increasing in non-performing assets (NPAs) and the negative sentiment post-Nirav Modi fraud at Punjab National Bank (PNB).

Out of 21 PSU banks, 13 banks thus far announced their March quarter results (Q4FY18) has reported a combined standalone net loss of Rs 340 billion as compared to Rs 21 billion in the same quarter last year.

PNB, the largest loser among the pack, tanked 61% from its four-month high of Rs 197 to close at Rs 76.45 on Thursday. The bank posted a record net loss of Rs 134 billion in Q4FY18 against a net profit of Rs 2.62 billion in previous year quarter.

(BOB) was down 3% to Rs 126, touching its lowest level since February 15, 2016, on the BSE in intra-day trade today. The stock plunged 30% from its four-month high of Rs 180 recorded on January 24, 2018.

State Bank of India (SBI) will declare its March quarter results on Tuesday, May 22, 2018, while BOB will announce its Q4FY18 results on Friday, May 25, 2018.

Meanwhile, according to a Business Standard report, the Centre may ask the Reserve Bank of India (RBI) to consider revising the prompt corrective action (PCA) framework so that a complete restriction on fresh lending does not affect credit flow to business, particularly small and medium enterprises.

Piyush Goyal, who recently assumed charge as finance minister till Arun Jaitley recovers from an operation, held a review meeting with the top management of 11 public sector banks under the PCA framework on Thursday.

Goyal described the present state of the public sector banks as a “legacy issue” and expressed confidence that banks will come out of the situation in a short time.

A government official said the capital requirement, under the second tranche of recapitalisation, will be decided after assessing the financial results of all the public sector banks for 2017-18, added report. CLICK HERE TO READ FULL REPORT

4-month high Price as on
Bank Price Date 17/05/2018 % chg
Punjab Natl.Bank 197.00 25/01/2018 76.45 -61
UCO Bank 36.65 25/01/2018 18.20 -50
Bank of India 183.25 25/01/2018 95.55 -48
Syndicate Bank 83.50 24/01/2018 44.80 -46
Allahabad Bank 74.00 25/01/2018 39.75 -46
Union Bank (I) 151.80 25/01/2018 85.15 -44
Oriental Bank 136.35 25/01/2018 78.85 -42
United Bank (I) 19.35 25/01/2018 11.20 -42
Bank of Maha 22.70 18/01/2018 13.15 -42
Dena Bank 27.85 25/01/2018 16.55 -41
Andhra Bank 59.40 25/01/2018 35.35 -40
Corporation Bank 41.70 18/01/2018 25.65 -38
Canara Bank 384.90 25/01/2018 239.90 -38
I O B 24.45 25/01/2018 16.25 -34
Pun. & Sind Bank 49.75 18/01/2018 33.75 -32
IDBI Bank 91.50 05/03/2018 62.55 -32
Bank of Baroda 179.70 24/01/2018 130.00 -28
St Bk of India 332.75 25/01/2018 242.70 -27
Indian Bank 406.00 24/01/2018 301.95 -26
Central Bank 87.90 16/03/2018 66.25 -25
Vijaya Bank 74.00 24/01/2018 58.75 -21

First Published: Fri, May 18 2018. 12:27 IST