PSBs trade weak; Union Bank of India, Syndicate Bank hit 52-week low

Shares of public sector banks (PSBs) were down by up to 5% on the National Stock Exchange (NSE) in morning trade on concerns of stress in the banking sector.

Syndicate Bank, Allahabad Bank and IDBI Bank have fallen in the range 3% to 5%, while Union Bank of India, Andhra Bank, Oriental Bank of Commerce, Bank of Baroda, State Bank of India (SBI), Bank of India, Punjab National Bank (PNB) and Canara Bank were down between 1% to 2% on the NSE.

At 09:47 am; Nifty PSU Bank index, the largest loser among sectoral indices, was down 1.5% as compared to 0.01% rise in the Nifty 50 index and a marginal 0.02% decline in the Nifty Private Bank index.

Among the PSBs, Syndicate Bank (down 5% at Rs 41.55) and Union Bank of India (down 2% at Rs 81.50) from the Nifty PSU Bank index hit their respective 52-week lows in intra-day trade today. Andhra Bank and Indian Bank too touched 52-week lows today.

The Reserve Bank of RBI on Tuesday said Gross NPA ratio of banks is likely to rise from 11.6% cent in March 2018 to 12.2% by the end of the current financial year ratio.

Referring to the 11 state-owned banks under prompt corrective action framework (PCA), the RBI said they may experience worsening of their GNPA ratio from 21% in March 2018 to 22.3%t by this financial year-end, the PTI report suggested. CLICK HERE TO READ FULL REPORT

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