PSU bank stocks are weak today, amid concerns over bad loans.
On Monday, the central bank had said that the oversight committee would be reconstituted and expanded to deal with rising bad loans of state-run banks. The apex bank is also reportely planning to expand the scope of cases to be referred to the committee beyond those under the Scheme of Sustainable Structuring of Stressed Assets.
In a press statement, RBI said that it has been decided to reconstitute the oversight committee and also enlarge it to include more members so that the OC can constitute requisite benches to deal with the volume of cases referred to it. The committee consists of two members now, and mor will be added soon, RBI said.
Banks have been mandated to implement the Joint Lending Forum's decisions without further reference to them and have been warned that non-adherence would invite enforcement actions.
Reserve Bank has already sought information on the current status of the large stressed assets from the banks.
None of the stocks in the Nifty PSU Bank index is up in positive territory at present. Bank of India is down by about 4.3%. Allahabad Bank, Andhra Bank, Union Bank of India and Syndicate Bank are down 2% - 3%. Canara Bank is down 1.6%.
State Bank of India, IDBI Bank, Oriental Bank of Commerce and Bank of Baroda are lower by 1% - 1.4%, while Punjab National Bank is down nearly 1%.
Among other stocks in the PSU banking space, United Bank of India, Indian Bank, Punjab & Sind Bank, Corporation Bank and Vijaya Bank are down 3% - 4.5%. Indian Overseas Bank, Bank of Maharashtra, Syndicate Bank, Central Bank of India and Dena Bank are down 1.5% - 2.7%.
