Banking shares fall up to 8% on NPAs

Shares of state-owned banks slumped by up to eight per cent on concerns of growing bad debts.

Published: July 27, 2012 10:44:14 pm

Shares of state-owned banks including Punjab National Bank,Union Bank and Central Bank of India today slumped by up to eight per cent on concerns of growing bad debts.

However,ICICI Bank’s grew 2.35 per cent higher to settle at Rs 928.20 on the BSE as the private sector lender posted a decline in net non-performing asset (NPA) in the June quarter.

On the contrary to ICICI,Punjab National Bank declined by 5.34 per cent to settle at Rs 715.85 on the BSE,while shares of Bank of India tumbled by 5.34 per cent to close at Rs 291.35.

In addition,the scrip of Union Bank slumped as much as 7.86 per cent to close at Rs 164.05. Besides,Central Bank of India,too,witnessed a surge in bad debts sending its shares down by 6.07 per cent to close at Rs 68.85.

The scrip of Dena Bank went down 4.12 per cent to close at Rs 87.30.

Most of the PSU banks,which posted their respective quarterly earnings today have witnessed a rise in NPA in the three months ended June 30,2012. In contrast,ICICI Bank was able to trim its NPA.

The PSU banks’ quarterly earnings marred State Bank of India’s performance,which fell 3.77 per cent to close at Rs 1,941.20 on the BSE,according to market experts.

However,SBI is yet to announce its second quarter results.

A sharp fall in SBI’s share price,placed it below than HDFC Bank in terms of market capitalisation.

HDFC Bank’s fell by 3.13 per cent to settle at Rs 584.25 as a result,private sector bank’s market capitalisation rose to Rs 1,37,554 crore as against SBI’s 1,30,263 crore,according to the BSE data.

The sharp fall in the PSU bank’s share prices were in contrast with overall strength in the broader market. The BSE’s benchmark Sensex rose 199.37 points,or 1.20 per cent,to close at 16,839.19 points.

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