BOI, SBI, other PSB shares under pressure; slip up to 7%
NEW DELHI: Shares of public sector banks were trading under severe pressure in the afternoon trade with Bank of India falling the most 7 per cent, followed by Oriental Bank of Commerce (down 4.25 per cent) and State Bank of India (down 3.96 per cent).
The Nifty PSU Bank index was trading 3.30 per cent down at 3,644.75 around 1.50 pm (IST). Other PSU majors such as Andhra Bank, IDBI, Allahabad Bank, Syndicate Bank, Union Bank, Punjab National Bank, Bank of Baroda and Canara Bank were also trading down by 3.23 per cent, 3.20 per cent, 2.91 per cent, 2.77 per cent, 2.49 per cent, 1.55 per cent, 1.38 per cent and 0.19 per cent, respectively.
According to reports, the Reserve Bank of India (RBI) was likely to announce NPA ordinance details soon.
Bank of India, the country's sixth-biggest lender by assets, reported a fourth-quarter net loss of Rs 1,046 crore as provisions for bad loans remained high. Net loss for the quarter ended March 31 narrowed from a loss of Rs 3,587 crore a year earlier.
State Bank of India on Friday reported a 122.72 per cent increase in its net profit to Rs 2,815 crore in the last quarter of 2016-17 fiscal ended March 31. The SBI's net profit was Rs 1,264 crore in the same period in 2016.
While maintaining a ‘Buy’ on SBI with a target price of Rs 360, global brokerage house CLSA said, “Performance of subsidiary banks disappointed with high NPL recognition. Believes credit costs could remain high to factor in aging NPLs.”
The Nifty PSU Bank index was trading 3.30 per cent down at 3,644.75 around 1.50 pm (IST). Other PSU majors such as Andhra Bank, IDBI, Allahabad Bank, Syndicate Bank, Union Bank, Punjab National Bank, Bank of Baroda and Canara Bank were also trading down by 3.23 per cent, 3.20 per cent, 2.91 per cent, 2.77 per cent, 2.49 per cent, 1.55 per cent, 1.38 per cent and 0.19 per cent, respectively.
According to reports, the Reserve Bank of India (RBI) was likely to announce NPA ordinance details soon.
Bank of India, the country's sixth-biggest lender by assets, reported a fourth-quarter net loss of Rs 1,046 crore as provisions for bad loans remained high. Net loss for the quarter ended March 31 narrowed from a loss of Rs 3,587 crore a year earlier.
State Bank of India on Friday reported a 122.72 per cent increase in its net profit to Rs 2,815 crore in the last quarter of 2016-17 fiscal ended March 31. The SBI's net profit was Rs 1,264 crore in the same period in 2016.
While maintaining a ‘Buy’ on SBI with a target price of Rs 360, global brokerage house CLSA said, “Performance of subsidiary banks disappointed with high NPL recognition. Believes credit costs could remain high to factor in aging NPLs.”