As many as 9 stocks out of 11 PSU banks under the RBI’s PCA (prompt corrective action) framework 52-week lows on Monday after Rs 5,000 crore scam unravelled at Andhra Bank triggering the share price to nearly 14-year low. The Reserve Bank of India had placed 11 PSBs (public sector banks) — Dena Bank, Central Bank of India, Bank of Maharashtra, UCO Bank, IDBI Bank, Oriental Bank of Commerce, Indian Overseas Bank, Corporation Bank, Bank of India, Allahabad Bank and United Bank of India –under the PCA framework. Barring the shares of IDBI Bank and Central Bank of India, all other nine PSU bank stocks slipped to their respective 52-week lows on Monday.
All the components of the benchmark Nifty PSU Bank index traded in negative territory on Monday with shares of Andhra Bank dropping about 14% followed by shares of IDBI Bank, which fell over 6% today.
Shares of Oriental Bank of Commerce, Bank of India and Bank of Maharashtra were the top losers among the RBI’s list of PCA framework. The stock of Oriental Bank of Commerce dropped 8% to a 52-week low of Rs 83.95; Bank of India shed 5.73% to a 52-week low of Rs 92.05 while Bank of Maharashtra dived 5.42% to a 52-week low of Rs 13.95 on NSE. Other shares which also tripped to their respective 52-week lows include UCO Bank (down 4.59% to Rs 22.85); Corporation Bank (down 4.56% at Rs 28.25); United Bank of India (down 3.29% to Rs 11.75); Dena Bank (down 3.46% to Rs 18.1); Indian Overseas Bank (down 1.65% at Rs 17.85); and Allahabad Bank (down 4.95% at Rs 43.3).
Shares of IDBI Bank and Central Bank of India also traded in red but were away from their 52-week low levels. Shares of IDBI Bank were the second-biggest loser amid constituents of Nifty PSU Bank index after Andhra Bank. The stock of IDBI Bank tumbled 11.67% to a day’s low of Rs 62.45 whereas shares of Central Bank of India slid 5.51% to a day’s low of Rs 71.1 today.
As per the latest data available with the government, the gross NPAs (non-performing assets) of all the banks in the country totalled Rs 8,40,958 crore at the end of 31 December 2017.
