Bank Nifty slips on SBIís higher provisioning for bad debts
In absolute terms, gross NPAs in Q2FY13 stood at R49,202.46 crore. SBI also disappointed on the margin front, as net interest income fell 1% to 5%. In absolute terms, the net interest income stood at R10,973 crore. Market experts said SBI's Q2 numbers were below expectations and largely disappointed on the NPA front. In addition, the 30% rise in quarterly profit was also the smallest increase this year, as higher provisioning limited earnings growth.
On the National Stock Exchange (NSE), shares of SBI closed at R2,153.15, down R89.15, or 3.98%. More than 75.47 lakh shares were traded on the Bombay Stock Exchange (BSE) and the NSE. Shares of Union Bank declined R8.45, or 3.56%, to R229.50. Bank of India, Canara Bank, ICICI Bank, Kotak Mahindra Bank, Bank of Baroda and Punjab National Bank ended down in the range of 1-3%. The Bank Nifty ended the day at 11,475.60, down 137.95 points, or 1.19%.
Analysts were of the view that asset quality problems ó especially in case of public sector banks ó continue to be an issue and several public sector
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