Shares in government owned banks came crashing down on asset quality concerns. Bank of Baroda lost a huge 11 per cent, while Bank of Baroda lost 4.3 per cent, state Bank of India was down 4.2 per cent and Bank of India was down 4.45 per cent.
Government owned banking results have been very poor. Oriental Bank of Commerce saw a huge increase in non performing assets and this was followed by Union Bank of India and Bank of Baroda. It is expected that the larger sector banks like State Bank of India may continue to show patchy results.
Analysts expect a further downgrade of public sector banks and see further slide. A short covering rally in select few stocks cannot be ruled out.