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Banks recover from intraday low

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Capital Market
Last Updated : May 06 2013 | 11:30 AM IST

Kotak Mahindra Bank (down 1.28%), HDFC Bank (down 1.21%), IndusInd Bank (down 1.14%), Yes Bank (down 1.05%), Axis Bank (down 0.84%), Canara Bank (down 0.79%), Union Bank of India (down 0.77%), Punjab National Bank (down 0.52%), ICICI Bank (down 0.45%), State Bank of India (down 0.39%), Bank of Baroda (down 0.19%) and Federal Bank (down 0.18%), edged lower.

However, Bank of India (up 0.6%), and IDBI Bank (up 0.34%), edged higher.

The S&P BSE Bankex was down 0.84% at 14,064.07, recovering from day's low of 13,952.17. At the day's low, the index had fallen as much as 1.63%.

The S&P BSE Bankex underperformed the S&P BSE Sensex, which was up 0.26% at 19625.98.

The S&P BSE Bankex tumbled 2.40% to 14183.60 on Friday, 3 May 2013. The Reserve Bank of India (RBI) on Friday, 3 May 2013, cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing.

The S&P BSE Bankex had outperformed the market over the past one month till 3 May 2013, rising 8.81% compared with the Sensex's 4.12% rise. The index had, however, underperformed the market in past one quarter, falling 1.95% as against Sensex's 1.04% fall.

In his second expose on irregularities in the Indian financial system, Cobrapost today accused 23 public and private financial institutions for facilitating money laundering.

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Among the banks and financial institutions that were exposed included Life Insurance Corporation, State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Bank, IDBI Bank, Yes Bank, Federal Bank, Reliance Capital, Birla Sunlife, among others.

The Cobrapost investigations were conducted fore more than half a year in many states including Uttar Pradesh, Rajasthan, Delhi, Haryana, Andhra Pradesh & Karnataka

The second round of secret videos have revealed violation of several provisions of the Income Tax Act, FEMA, RBI regulations, KYC norms, the Banking Act and Prevention of Money Laundering Act (PMLA), said Cobrapost in a press release.

Earlier on 13 March 2013, Cobrapost had aired several secret recordings showing that several bank employees were involved in structuring transactions to aid tax evasion and fraudulent transfer of funds. Codenamed 'Operation Red Spider', it exposed money laundering practices in HDFC Bank, ICICI bank and Axis Bank.

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First Published: May 06 2013 | 10:37 AM IST

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