Twelve bank shares were down by 0.18% to 1.28% at 10:35 IST on BSE, recovering from the day's low after Cobrapost today, 6 May 2013, accused 23 public and private financial institutions for facilitating money laundering.
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.
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In his second expose on irregularities in the Indian financial system, Cobrapost today accused 23 public and private financial institutions for facilitating money laundering.
Banks and financial institutions that were exposed in the Cobrapost sting operation 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 and Birla Sunlife.
The Cobrapost investigations were conducted for 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.
Today's expose is the second by Cobrapost after the online portal had on 13 March 2013 alleged that HDFC Bank, ICICI Bank and Axis Bank were involved in money laundering.
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