Budget 2013: PSU banks under pressure as Budget disappoints
Shares of public sector banks were down on profit booking as the Union Budget left little for the sector to cheer about.
By ET Online | Updated:
MUMBAI: Shares of public sector banks were down on profit booking as the Union Budget left little for the sector to cheer about. According to dealers, the announcement of capital infusion of Rs 140 billion, below market estimates for Rs 200 billion, disappointed the investors.
At 02:50 pm, the BSE Bankex was down 2.39 per cent. SBI was fell 5.17 per cent, Punjab National Bank was down 5.77 per cent, Union Bank was 3.50 per cent lower, Canara Bank declined 3.69 per cent and Bank of India was 3.27 per cent lower.
No announcement to encourage retail savings in banks and farm loan via private sectors banks are likely to negatively impact the sector, they say.
“Deposits in banks have been showing a falling trend and major power restructuring plans are ahead like re-structuring of SEB short-term loans where banks will play a vital role. No announcement to encourage retail savings in banks was done,” said K. Subramanyam, AVP-Institutional Research, Asit C.Mehta.
“Farm loans at 4 per cent have been extended to private banks which is a negative,” he added.
At 02:50 pm, the BSE Bankex was down 2.39 per cent. SBI was fell 5.17 per cent, Punjab National Bank was down 5.77 per cent, Union Bank was 3.50 per cent lower, Canara Bank declined 3.69 per cent and Bank of India was 3.27 per cent lower.
No announcement to encourage retail savings in banks and farm loan via private sectors banks are likely to negatively impact the sector, they say.
“Deposits in banks have been showing a falling trend and major power restructuring plans are ahead like re-structuring of SEB short-term loans where banks will play a vital role. No announcement to encourage retail savings in banks was done,” said K. Subramanyam, AVP-Institutional Research, Asit C.Mehta.
“Farm loans at 4 per cent have been extended to private banks which is a negative,” he added.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
