Bank Nifty have erases nearly half of its gain falling over 13% in past seven trading sessions after the Reserve Bank of India (RBI) Governor Raghuram Rajan surprised markets on his policy review by raising interest rates, followed by slew of downgrades by rating agencies.
The National Stock Exchange (NSE) banking share index Bank Nifty has slipped 243 points or 2.5% at 9,656 points at 1050 hours, declining 13.4% or 1,500 points from 11,149 on September 19. The benchmark index S&P Nifty has dipped 5.8% during the same period.
ICICI Bank, YES Bank, Union Bank of India, Union Bank of India, Canara Bank and Bank of Baroda are down 3-4% at 1100 hours on the NSE.
Bank Nifty had rallied sharply since Raghuram Rajan took over as RBI Governor, rising 29% since September 4th, on announcing measures to support the embattled rupee and unveiling a raft of steps to liberalise financial markets and the banking sector.
Bank of India, Indian Bank, Bank of Baroda, Punjab National Bank and Union Bank of India have fallen 15-20% in past seven trading days after surging 30-40% between September 4 and September 19 on the NSE.
Meanwhile, last week the rating agency Fitch has downgraded the viability rating of Punjab National Bank, Bank of Baroda and Indian Bank from ‘bbb-’ to ‘bb+’, citing deteriorating asset quality and higher provisioning for stressed assets portfolios, while Moody lowered the ratings of senior unsecured debt and local currency deposits of SBI to Baa3 from Baa2.
Moody's Investors Service says the weaker conditions will negatively affect the asset quality, profitability, and capital of public sector banks.
The global rating agency has lowered its outlook for India's GDP growth to 4.5% from 5.5%, reflecting the recent depreciation of the rupee, which will exacerbate inflationary pressures, keeping domestic interest rates relatively high and hindering a recovery in domestic demand growth.
The Indian rupee has depreciated 1.6% against US dollar to 62.78 from 61.78 on September 19, after appreciating nearly 9% from 67.73 on September 3.
The National Stock Exchange (NSE) banking share index Bank Nifty has slipped 243 points or 2.5% at 9,656 points at 1050 hours, declining 13.4% or 1,500 points from 11,149 on September 19. The benchmark index S&P Nifty has dipped 5.8% during the same period.
ICICI Bank, YES Bank, Union Bank of India, Union Bank of India, Canara Bank and Bank of Baroda are down 3-4% at 1100 hours on the NSE.
Bank Nifty had rallied sharply since Raghuram Rajan took over as RBI Governor, rising 29% since September 4th, on announcing measures to support the embattled rupee and unveiling a raft of steps to liberalise financial markets and the banking sector.
Bank of India, Indian Bank, Bank of Baroda, Punjab National Bank and Union Bank of India have fallen 15-20% in past seven trading days after surging 30-40% between September 4 and September 19 on the NSE.
Meanwhile, last week the rating agency Fitch has downgraded the viability rating of Punjab National Bank, Bank of Baroda and Indian Bank from ‘bbb-’ to ‘bb+’, citing deteriorating asset quality and higher provisioning for stressed assets portfolios, while Moody lowered the ratings of senior unsecured debt and local currency deposits of SBI to Baa3 from Baa2.
Moody's Investors Service says the weaker conditions will negatively affect the asset quality, profitability, and capital of public sector banks.
The global rating agency has lowered its outlook for India's GDP growth to 4.5% from 5.5%, reflecting the recent depreciation of the rupee, which will exacerbate inflationary pressures, keeping domestic interest rates relatively high and hindering a recovery in domestic demand growth.
The Indian rupee has depreciated 1.6% against US dollar to 62.78 from 61.78 on September 19, after appreciating nearly 9% from 67.73 on September 3.
| Bank | 03/09/2013 | 19/09/2013 | %chg | 30/09/2013 | %chg* |
| Yes Bank | 229.10 | 386.70 | 68.79 | 292.20 | -24.44 |
| Oriental Bank | 125.90 | 189.10 | 50.20 | 146.30 | -22.63 |
| Central Bank | 50.15 | 62.00 | 23.63 | 50.15 | -19.11 |
| Union Bank of India | 101.50 | 139.30 | 37.24 | 111.65 | -19.85 |
| Indian Bank | 63.20 | 82.50 | 30.54 | 68.35 | -17.15 |
| Corporation Bank | 241.55 | 284.35 | 17.72 | 243.80 | -14.26 |
| Bank of India | 134.65 | 191.90 | 42.52 | 158.10 | -17.61 |
| Punjab National Bank | 409.45 | 556.79 | 35.98 | 466.00 | -16.31 |
| IndusInd Bank | 348.40 | 434.40 | 24.68 | 367.25 | -15.46 |
| Bank of Baroda | 461.25 | 577.35 | 25.17 | 489.75 | -15.17 |
| Syndicate Bank | 64.40 | 78.25 | 21.51 | 66.45 | -15.08 |
| Price on BSE in Rs (as at 1100 hours) | |||||
| * Change over September 19, 2013 | |||||
