Andhra Bank fell 9.03% to Rs 65.45 at 15:10 IST on BSE on reports the bank has a loan exposure of Rs 4346 crore to companies that have been ordered by the Supreme Court to return coal blocks.
Meanwhile, the BSE Sensex was down 304.67 points, or 1.14%, to 26,440.02.
On BSE, so far 13.36 lakh shares were traded in the counter, compared with an average volume of 4.19 lakh shares in the past one quarter.
The stock hit a high of Rs 72 and a low of Rs 65.25 so far during the day. The stock hit a 52-week high of Rs 110 on 5 June 2014. The stock hit a 52-week low of Rs 51.45 on 30 September 2013.
The stock had underperformed the market over the past one month till 24 September 2014, falling 6.86% compared with 1.23% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 26.81% as against Sensex's 5.42% rise.
The mid-cap company has an equity capital of Rs 589.61 crore. Face value per share is Rs 10.
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Andhra Bank's chairman C.V.R. Rajendran was quoted by media as saying that the bank's total exposure to steel and power companies is between Rs 12000 crore and Rs 13000 crore.
Shares of banks declined on concerns that the verdict scrapping coal allocations could lead to a rise in bad loans.
The Supreme Court in its final verdict announced on Wednesday, 24 September 2014, scrapped 214 out of 218 coal blocks allocated between 1993 and 2010 it had already declared illegal due to irregularities in the allocation of the blocks. The four coal blocks which are exempt from the verdict are run by the Central government with no joint venture with the private sector.
Net profit of Andhra Bank declined 53.74% to Rs 107 crore on 9.1% rise in operating income to Rs 4205.06 crore in Q1 June 2014 over Q1 June 2013.
The Government of India (GoI) held 60.14% stake in Andhra Bank (as per the shareholding pattern as on 30 June 2014).
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