South Indian Bank fell 0.65% to Rs 10.69 after India Ratings & Research downgraded its ratings on the debt instruments of the bank.
India Ratings and Research lowered its ratings on the bank's lower tier II bonds & tier II bonds (Basel III complaint) worth Rs 1490 crore to IND A+/Negative from IND A+/Stable.The rating reflects higher proportion of stressed assets to net worth, subdued profitability along with lower provision coverage compared to peer banks, thereby increasing the importance of raising tier I capital in the medium term. The announcement was made after trading hours yesterday, 9 December 2019.
Meanwhile, the S&P BSE Sensex was down 150 points or 0.37% to 40,337.22.
Shares of South Indian Bank declined 2.81% in four trading sessions to its current market price of Rs 10.69 from its recent closing high of Rs 11 on Wednesday, 4 December 2019.
In the past one month, the stock slipped 2.55% to its current market price of Rs 10.69, underperforming the Nifty Private Bank index's 0.40% rise in the same period.
On the technical front, the stock's RSI (relative strength index) stood at 42.392. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading below its 50-day moving average (DMA) placed at Rs 10.75, and below its 200 DMA placed at Rs 12.93.
South Indian Bank's net profit rose 20.5% to Rs 84.48 crore on 18.8% rise in total income to Rs 2,203.18 crore in Q2 September 2019 over Q2 September 2018.
South Indian Bank provides retail and corporate banking, para banking activities, such as debit card, third-party product distribution, in addition to treasury and foreign exchange business.
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