PSU banks trade weak; Andhra Bank, Syndicate Bank, PNB down 5%

Photo: Kamlesh Pednekar
Shares of public sector undertaking (PSU) banks have fallen by upto 5% on the National Stock Exchange (NSE) on Tuesday in intra-day trade after scam-hit Punjab National Bank (PNB) incurred a net loss for the second consecutive quarter.

PNB slipped 5% to Rs 85.60, falling 7% from intra-day high on the BSE, after the bank reported a net loss of Rs 9.4 billion in June quarter (Q1FY19), on higher provision for bad loans.

The country's second-biggest state-run lender had posted net profit of Rs 3.43 billion in year ago quarter and loss of Rs 134.17 billion in previous quarter.

Net interest income of the bank during the quarter under review grew 21.7% at Rs 46.92 billion against Rs 38.55 billion in the corresponding quarter of previous fiscal.

Analysts on an average had expected a net loss of Rs 13 billion and net interest income of Rs 40 billion for the quarter.

PNB managed to improve on its assets quality performance compared to the immediate preceding quarter with the bank’s gross non-performing assets (GNPAs) were at 18.26% in June quarter against 18.38% in March quarter (Q4FY18). Net NPAs were at 10.58% in Q1FY19 as against 11.24% in Q4FY18.  The GNAP and NNPA were stood at 13.66% and 8.67%, respectively, in Q1FY18.

Besides PNB, Andhra Bank and Syndicate Bank slipped 5% each, Union Bank of India, Oriental Bank of Commerce, IDBI Bank, Bank of Baroda, Allahabad Bank and Bank of India were down 2% to 4% on the NSE.

At 02:07 pm; Nifty PSU Bank index was trading 1.5% lower at 3,274, as compared to 0.11% rise in the Nifty 50 index.

In past one month, PSU bank index had outperformed the market by surging 20% against 6% rise in the benchmark index till Monday. PNB, State Bank of India (SBI), Bank of Baroda, Indian Bank, Bank of India and IDBI Bank soared in the range of 10% to 30% during the period.

Bank 06/07/2018 06/08/2018 % chg Latest % chg
ANDHRA BANK 32.35 36.00 11.28 34.20 -5.00
PUNJAB NATL.BANK 76.95 90.05 17.02 86.00 -4.50
SYNDICATE BANK 40.65 44.10 8.49 42.15 -4.42
UNION BANK (I) 81.30 90.60 11.44 87.20 -3.75
ORIENTAL BANK 74.85 82.35 10.02 79.55 -3.40
IDBI BANK 48.25 63.20 30.98 61.45 -2.77
BANK OF BARODA 115.55 150.55 30.29 146.50 -2.69
BANK OF INDIA 86.65 97.50 12.52 95.10 -2.46
ALLAHABAD BANK 42.50 46.30 8.94 45.30 -2.16
CANARA BANK 247.65 294.45 18.90 289.55 -1.66
INDIAN BANK 342.55 376.85 10.01 373.50 -0.89
ST BK OF INDIA 257.20 308.50 19.95 305.90 -0.84
           


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