homemarket Newsstocks NewsNifty PSU Bank index slips the most among sectoral indices; 10 PSUs remain in red

Nifty PSU Bank index slips the most among sectoral indices; 10 PSUs remain in red

Nifty PSU Bank index slips the most among sectoral indices; 10 PSUs remain in red
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By Mousumi Paul  Jul 31, 2019 4:36:28 PM IST (Published)

Nifty PSU Bank witnessed the most amount of losses as it declined more than 14 percent this month. Intraday, Nifty PSU Bank index declined 0.79 percent to its day’s low at 2,687.90.

The month of July saw huge losses in equities with Sensex and Nifty declining more than 5 percent. Among NSE sectoral indices, Nifty PSU Bank witnessed the most amount of loss as it declined more than 14 percent this month.

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Intraday, Nifty PSU Bank index declined 0.79 percent to its day’s low at 2,687.90.
Nifty PSU bank
Out of 12 PSU Banks, 10 delivered double-digit loss. Oriental Bank of Commerce remained the top loser in the Nifty PSU Bank index, which fell 26 percent this month.
Other banks with double-digit losses are IDBI Bank, Allahabad Bank, Syndicate Bank, Bank of India, Canara Bank, Union Bank, Punjab National Bank, Bank of Baroda and Andhra Bank.
Two banks -- Indian Overseas Bank and State Bank of India -- slipped over 8 percent this month, the least in the index.
The aforementioned stocks declined in trade despite Finance Minister Nirmala Sitharaman announcing a bank re-capitalisation package of Rs 70,000 crore for growth capital in PSBs.
Moody's Investors Service, in its recent research report said, "Our outlook for the Indian banking system is stable. Pressure on banks' asset quality and capitalisation has eased while profitability will improve. However, an economic slowdown and stress among NBFCs pose risk."
It further said, "Asset quality remains a key credit weakness for PSBs, but it has improved across the system in a year as a result of slow NPL formation, recoveries from large resolved NPLs and the acceleration of write-offs enabled by improved provisioning coverage."
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