On Monday evening RBI came up with new provisions to deal with banks NPA, which now would start weekly reporting of defaults for faster redressal. Also at the same time, previous regimes such as the JLF agreement and certain other existent provisions have been done away with immediate effect.
With this, stocks in the banking space are trading lower despite the Sensex and Nifty trading higher. The set of stocks affect include the likes of SBI, Bank of Baroda and Syndicate Bank.
Also the news that PNB has detected a fraud of a huge $1.77 billion, has pushed the stock lower by over 6.5% in intraday on Wednesday.
Bank of India has also fallen 6% due to NPA woes.
The decline has come in despite the commendable new NPA rules which are being deemed to be structurally positive for the banking sector in the long run.