NEW DELHI: Losses in Bank of Baroda (down 3.21 per cent), IDBI Bank (down 0.71 per cent) and State Bank of India (down 0.66 per cent) were keeping the Nifty PSU Bank index down during morning trade on Monday.The Nifty PSU Bank was trading 0.51 per cent down at 2,923.35 around 10:40 am.
However, Punjab National Bank (up 1.81 per cent), Syndicate Bank (up 1.03 per cent) and Canara Bank (up 0.84 per cent) were trading up.Shares of Union Bank of India (up 0.45 per cent), Bank of India (up 0.41 per cent), Oriental Bank of Commerce (up 0.38 per cent), Andhra Bank (up 0.28 per cent), Allahabad Bank (up 0.25 per cent) and Indian Bank (up 0.19 per cent) were also in the green.Nine of the 11 PSU banks, which are currently under RBI watch for poor financial health, have submitted a two-year recovery plan to the government entailing stake sale in subsidiaries and reduction of corporate loan book.
The 11 banks under Prompt Corrective Action (PCA) are Dena Bank, Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce and Bank of Maharashtra.
Meanwhile, a TOI report said that the government is pushing loss-making state-run banks to sell their riskier assets to larger peers, such as SBI, to reduce the capital requirement of public sector lenders, that have been hit hard by the RBI's latest norms on provisioning for bad debt.
Benchmark NSE Nifty50 index was down 15 points at 10,681, while the BSE Sensex was 26 points down at 35,201.Among the 50 stocks in the Nifty index, 17 were trading in the green, while 33 were in the red.
GAIL, Indiabulls Housing Finance, HDFC Bank and Asian Paints were among the top losers in the Nifty pack of stocks.On the other hand, Dr.
Reddy's Laboratories, YES Bank, Mahindra Mahindra and HPCL were leading among Nifty gainers.