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Public sector banks (PSBs), which have generally been mauled over their high NPA levels with market pundits often voicing their preference for private sector bank stocks, have emerged relatively unscathed in the bloodbath being witnessed by the markets so far today.
It is not as if that the PSBs were spared from the selling spree but it is only that they seem to bleed less compared to their private sector peers!
The CNX Bank Nifty has shed about 550 points with all the 12 stocks constituting the Bank Nifty in the red. But among the major losers were the seven private sector banks- Axis Bank, HDFC Bank, IndusInd, Federal Bank, ICICI Bank, Yes Bank and Kotak Mahindra Bank. The PSU banks in the Bank Nifty were SBI, PNB, Canara Bank, BoB and BoI, all of which are down but to a lesser extent than the private sector banks.
Kotak Mahindra Bank was the biggest loser in terms of value- down by ₹58.25 to ₹1,365. The bank had come out with strong Q 4 numbers and had announced a bonus issue in the ratio of 1:1 yesterday but this was of little help when the market was witnessing all-round selling. YES Bank shares were down by ₹31.40 at ₹826.05, IndusInd bank was down by ₹26.35 at ₹810.20, Axis Bank shares shed ₹18.85 to trade at ₹547, Federal Bank shares lost ₹4.85 to ₹129.85, ICICI Bank lost ₹13.30 to ₹315.15 and HDFC Bank was down by ₹12.65 at ₹975.
The PSBs seemed to be in somewhat better shape as they were able to, with the exception of BoI and Canara Bank, limit their losses to single digit. SBI was down by ₹7.40 at ₹264.65, PNB shed ₹5.10 to trade at ₹160.75 and BoB lost ₹6.30 to slip to ₹163.70. Canara Bank was down by ₹13.95 to trade at ₹371.30 and BoI lost ₹10.55 to trade at ₹212.50.
It is to be pointed out that while all the private banks mentioned above have come out with their Q4 and FY 2014-15 results, the five PSBs in the Bank Nifty are yet to do so. It is not clear whether this was a factor for their getting lesser pounding today. The CNX Bank Nifty was the biggest loser among the sectoral indices on the NSE shedding about 556 points and only the FMCG index which lost about 500 points came anywhere near it.
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