CNX PSU Bank index hits 52-week low

Banking shares mainly public sector undertaking (PSU) banks were continue under selling pressure with the National Stock Exchange (NSE) CNX PSU Bank index hit 52-week low today.

Punjab National Bank (Rs 131), Bank of India (Rs 170) and Punjab & Sind Bank (Rs 40.60) have touched their respective fresh 52-week lows during intra-day trade.

At 1045 hours, CNX PSU Bank index was down 1% at 3,142 against 0.42% rise in the CNX Nifty. The PSU bank index touched a low of 3,120, its lowest level since May 13, 2014 on the NSE.

Thus far in June, CNX PSU Bank index has dipped 11% as compared to 4.9% fall in the benchmark index due to a lower than expected Q4 (January-March 2015) earnings by most of the PSU banks.

Oriental Bank Commerce (OBC), Union Bank of India, IDBI Bank, Indian Overseas Bank (IOB), Indian Bank, Andhra Bank, Canara Bank, Punjab National Bank, Allahabad Bank and Bank of India has fallen between 12%-20% so far during the current month.

Excluding State Bank of India, the aggregate standalone net profit of 26 PSU banks declined by 32% to Rs 5,587 crore in March 2015 quarter against Rs 8,168 crore in the year ago quarter.

Of these 18 banks have seen rise in gross and net non-performing assets (NPA) over the previous year quarter, the CapitalinePlus data shows.

 


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