PSU bank stocks slipped into negative territory in the late morning deals on Tuesday with shares of scam-hit PNB and India’s largest lender SBI dropping up to 0.6% while three PSBs (public sector banks) including Bank of India touched 52-week low. All the components of Nifty PSU Bank index fell into red barring IDBI Bank after opening in green. The stocks of PSU banking giants such as State Bank of India, Punjab National Bank, Bank of Baroda traded down jointly posting the biggest drag to the benchmark Nifty PSU Bank index. Shares of Punjab National Bank lost 0.85% to a day’s low of Rs 99.25 today.
Amid the sell-off in PSU bank stocks, shares of Andhra Bank, Canara Bank and Bank of India touched their respective 52-week lows in Tuesday’s session. The stock of Andhra Bank fell 1.13% to a 52-week low of Rs 43.7; stock of Canara Bank slumped 1.3% to a 52-week low of Rs 276.6 while the share of Bank of India shed 1.67% to a 52-week low of Rs 108.8 on NSE. While, on the other hand, shares of other PSU banks were trading mixed with stocks of India Bank down 0.15%, Syndicate Bank down 0.42%, Union Bank of India down 0.79%, Allahabad Bank up 0.1%, Oriental Bank of Commerce up 0.2% and IDBI Bank up 2.48%.
Earlier last week on Thursday, the stocks of PSU bank such as State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Allahabad Bank, Indian Bank, Oriental Bank of Commerce, Union Bank of India cracked in the afternoon deals after the government ordered to close 35 international branches of Indian PSU banks. A panel of bankers has decided to close down 35 overseas branches of PSBs (public sector banks), further, it has been noted that will take a call on consolidation on 69 foreign branches, offices, arms and JVs. The government is looking to consolidate foreign operations of PSU banks in same geographies in order to make the PSBs (public sector banks) more cost-efficient and improved synergies in overseas markets.
Meanwhile, the Indian rupee gained nearly 20 paise against the US dollar on Tuesday as the domestic equities rebounded sharply with Sensex advancing over 200 points today.