Rating agency Moody’s downgrade of Indian banking sector from stable to negative and news of State Bank’s bad loans touching Rs 8,000 crore took benchmark indices down by 1.2 per cent in the last one hour on Wednesday. The scrip lost 7.2 per cent to close at Rs 1,853.40 to a share.
The SBI Chairman, Mr Pratip Chaudhuri, said that the bank still needed to set aside another Rs 2,500 crore as provisions for bad loans. He also said that all its business segments except retail were under pressure.
The bank announced that the gross non performing assets (bad loans) could go up further in the coming quarters.
The Nifty closed at 5,221.05, down 68.3 points (1.29 per cent) while the Sensex closed at 17,362.1, down 207.43 points.
Volatility was up 2.5 per cent and the India Vix closed at 24.3.
HUL, Wipro, TCS, Hero Motocorp and ITC were the top five Nifty gainers while SBI, BPCL, Tata Steel, DLF and Hindalco were the top losers.