Nifty PSU Bank index slips 5%; PNB, BOB, Canara, SBI dip up to 7%

At 10:00 AM, the Nifty PSU Bank index, the top loser among sectoral indices, was down 4.7 per cent, as compared to the 0.92 per cent decline in the Nifty 50

Shares of public sector banks are under pressure, with the Nifty PSU Bank index slipping 5 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade, and recording its sharpest intra-day fall in over five months.  On June 4, the PSU Bank index had tanked nearly 20 per cent in intra-day trade, before ending 15 per cent lower.

 

The sharp decline in PSU bank stocks was seen after Gautam Adani, the founder and the Chairman of the Adani Group, along with other executives, were charged by US prosecutors for allegedly bribing ($250 million) Indian officials to secure renewable energy supply contracts here.

 

 

At 10:00 AM, Nifty PSU Bank index, the top loser among sectoral indices, was down 4.7 per cent, as compared to the 0.92 per cent decline in the Nifty 50. 

 

Among the individual constituent stocks of the index, State Bank of India (SBI) slipped 5 per cent to Rs 761.55 in intra-day trade, while Bank of Baroda plunged 7 per cent to Rs 219.85, followed by Punjab National Bank (6 per cent at Rs 94.81), Canara Bank (5 per cent at Rs 92.52) and Bank of India (4 per cent at Rs 100.70).

 

Besides PSU banks, state-owned financial institutions like REC (Rs 469.25) and Power Finance Corporation (Rs 433) are down 9 per cent and 8 per cent, respectively.

 

Adani Green Energy, the Adani Group company, scrapped a $600 million dollar bond on Thursday after US prosecutors brought formal charges against the group's founder Gautam Adani for participating in an alleged bribery plot.

 

Adani Green Energy, in an exchange filing today informed that the United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against its Board members, Gautam Adani and Sagar Adani. The United States Department of Justice has also included the company's Board member, Vneet Jaain, in the criminal indictment.

 

In light of these developments, the company said that its subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings.