Shares of PSU banking major Union Bank of India nosedived today following reports of a Moody's downgrade. The Bank's shares were trading at Rs 219.50, down Rs 10.35 or 4.50% at 2:38 PM IST.
Moody's has downgraded the stock from BA1 to BA2. The rating agency has cited the weak asset quality and in ability meet loss-absorption as amongst the reasons for the downgrade. Other banking stocks too seemed to be sentimentally affected with State Bank of India, Punjab National Bank and HDFC Bank all down between 2% to 3%.
The last few quarters have been tough for the banking sector which has been affected by asset quality and low net interest margins, particularly the public sector banks. The recent CRR cut by the RBI might breathe fresh life into the sector, though bankers would prefer the RBI to cut repo rates going forward.
RBI officials are to meet next month in their Monetary Policy Review and it would be interesting to see what action is taken on the repo rate front.
GoodReturns.in
Notifications
Settings
Clear Notifications
No New Notifications
Notifications
Use the toggle to switch on notifications
Block for 8 hours
Block for 12 hours
Block for 24 hours
Don't block
To start receiving timely alerts, as shown below click on the Green “lock” icon next to the address bar
Click it and Unblock the Notifications
Close X
Close X
To Start receiving timely alerts please follow the below steps:
Click on the Menu icon of the browser, it opens up a list of options.
Click on the “Options ”, it opens up the settings page,
Here click on the “Privacy & Security” options listed on the left hand side of the page.
Scroll down the page to the “Permission” section .
Here click on the “Settings” tab of the Notification option.
A pop up will open with all listed sites, select the option “ALLOW“, for the respective site under the status head to allow the notification.
Once the changes is done, click on the “Save Changes” option to save the changes.
Click it and Unblock the Notifications
Sign in with Google