Shares of state-run lenders plunged by up to 12.4 per cent on Wednesday as investor sentiment was hit by mounting bad loans and disappointing earnings reported by them.
Central Bank of India shares plummeted by 12.37 per cent, Allahabad Bank slumped 9.61 per cent and Punjab National Bank dived 8.99 per cent.
Among others, Dena Bank shares declined by 7.52 per cent while Indian Overseas Bank tumbled 5.20 per cent on the BSE.
Besides, SBI scrip fell by 4.82 per cent to Rs.158.95 ahead of the bank’s financial results on Thursday.
Central Bank of India on Tuesday reported a loss of Rs.836.62 crore for October-December 2015-16 against a profit of Rs.137.65 crore in the third quarter of the previous fiscal.
The asset quality worsened with the gross non-performing assets (NPAs) rising to 8.95 per cent of the gross advances during the quarter as against 6.2 per cent a year ago.
Similarly, Dena Bank reported a loss of Rs.662.85 crore for the third quarter as against net profit of Rs.76.56 crore in the same quarter last year.
Allahabad Bank reported a loss of Rs. 486.14 crore for the third quarter against a net profit of Rs.164.11 crore in the same quarter year-ago.
Gross NPAs rose to 6.40 per cent from 5.46 per cent in the year ago period.
Country’s second largest PSU lender PNB’s net profit plummeted by 93 per cent to Rs.51 crore for the third quarter from Rs.774.56 crore in the year-ago period due to higher provisioning for mounting bad assets.
Bank | Percentage fall in shares |
Central Bank of India | 12.37 |
Allahabad Bank | 9.61 |
Punjab National Bank | 8.99 |
Dena Bank | 7.52 |
Indian Overseas Bank | 5.20 |
SBI | 4.82 |
