Bank stocks see selling pressure; down up to 4.6%
Bank stocks today fell by up to 4.6 per cent as investor sentiment took a hit after farm debt waiver was announced by the Maharashtra government yesterday.
Shares of Union Bank of India dipped 4.58 per cent, Canara Bank slipped 3.98 per cent, Bank of India dropped 3.84 per cent, Allahabad Bank (3.22 per cent) and Bank of Baroda (3.08 per cent) on BSE.
Among others, PNB went down by 2.56 per cent, Federal Bank lost 2.31 per cent, ICICI Bank (1.88 per cent), SBI (1.20 per cent), Axis Bank (1.18 per cent), Kotak Mahindra Bank (1.03 per cent) and City Union Bank (0.80 per cent).
The BSE bank index fell by 1.02 per cent to close at 26,546.77.
"Bad loans, averaging three quarters of PSU banks' net worth, looked to be haunting the banking stocks as the bankers headed for a meeting with the finance minister," Geojit Financial Services Ltd Chief Market Strategist Anand James said.
The Maharashtra government yesterday announced loan waiver for farmers and decided to form a committee to decide the criteria of debt relief.
Finance Minister Arun Jaitley today said the union government will not partake in states' fiscal leverage in waiving farm loans and made it clear that the cost has to be borne by them.
He also said the RBI is at a fairly advanced stage of preparing a list of borrowers where NPA resolution is required under the insolvency law and action on this front is expected soon.
Tags: