Comments
Shares of state-run banks sink on RBI's financial stability report. Nifty PSU bank index fell as much as 2.3 per cent to a 5-week low.
Flagging the continuing stress in the banking sector, the Reserve Bank of India had on Tuesday said the gross NPAs of banks may rise from 11.6 per cent in March 2018 to 12.2 per cent by March 2019.
Macro-stress tests on public sector banks under the prompt corrective action framework (PCA) suggest worsening of their GNPA ratio from 21 per cent in March 2018 to 22.3 per cent by March 2019, with six PSBs under PCA likely experiencing capital shortfall, it said.
In its 17th Financial Stability Report, the RBI said the system level capital-to-risk-weighted assets ratio (CRAR) may come down from 13.5 per cent to 12.8 per cent during the period.
Syndicate Bank Ltd fell as much as 7.2 per cent to Rs 40.60, its lowest since March 2009, while Bank of India Ltd declined as much as 4.4 per cent to Rs 88.15, its lowest since June 2016.
Oriental Bank of Commerce Ltd slumped as much as 4.1 per cent to Rs 72.8, its lowest since April 2003. For the year, the PSU bank index had declined 22.2 per cent as of Tuesday.
(With inputs from Reuters)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.