United Bank of India, Dena Bank, Uco Bank and Indian Overseas Bank were up in the range of 5% to 11% on the BSE. Corporation Bank, Vijaya Bank, Allahabad Bank, Syndicate Bank, Punjab National Bank and Andhra Bank were up between 1% and 4%. However, State Bank of India (SBI), Indian Bank and Oriental Bank of Commerce were trading 1% lower.
Meanwhile, at 12:15 pm; Nifty PSU Bank index was down 0.38% at 3,273 after hitting a low of 3,248 in intra-day trade on the NSE so far. On comparison, Nifty 50 index was trading lower 0.14% at 11,675 points.
The gross non-performing assets (GNPAs) of the banking sector is likely to improve to 10% in March 2019, from 11.52% as on June 30, 2018, as nearly 60% of the bad loans of the sector are under active resolution. The net NPA is also expected to decrease to 4.3%, from 5.92% as of June-end this year, ICRA said in its report.
With expiry of the 180-day period provided in RBI's February 12 circular for resolution of large stressed borrowers, Icra estimated that 70 big companies accounting for around Rs 3.8 trillion of debt may be heading for resolution under the Insolvency and Bankruptcy Code (IBC), the PTI report suggested. CLICK HERE TO READ FULL REPORT