The distress in India's banking sector appears to have not yet cooled down. Bloomberg data, on Friday, showed that out of the 15 worst performing banking stocks in the world, nine were listed on the Indian exchanges.
The performance of the stocks were based on the YTD (yield-to-date) returns. YTD refers to the period from the beginning of the year (1 January) to the present day. It is used as one of the ways to compare the performances of stock on various parameters, for instance, the investment returns was compared in the case of this data released by Bloomberg.
|Sl. No.||Name of the Bank||Total returns YTD|
|1||Yes Bank Ltd||-69.60%|
|2||IDBI Bank Ltd||-61.33%|
|3||Central Bank of India||-52.16%|
|4||Banco BBVA Argentina SA||-50.61%|
|5||Bank of India||-41.93%|
|6||Grupo Financiero Galicia||-41.77%|
|7||RBL Bank Ltd||-40.96%|
|8||Unicaja Banco SA||-40.78%|
|9||Indian Overseas Bank||-40.38%|
|11||Oriental Bank of Commerce||-38.88%|
|12||QNB Finansbank AS||-38.06%|
|13||AIB Group PLC||-36.52%|
|15||Swedbank AB-A Shares||-35.41%|
Yes Bank, which was on top of the list, has suffered over concerns of mounting bad loans and increase in provisions. The stock has crashed 70 percent this year. This week, its losses were accelerated by its exposure to CG Power. Shares of Yes Bank crashed this week after CG Power's risk and audit committee reported of unauthorised transactions carried out by "certain employees" of the company. Yes Bank holds 12.79 percent stake in CG Power and Industrial Solutions Ltd.
IDBI Bank's stock was the worst performer among India's public sector banks, having slumped 61 percent in 2019 for having increased its provisions for bad loans for the seventh straight year in 2018-19. For the June-ended quarter, the lender reported a massive loss of Rs 3,801 crore on account of higher provisions for non-performing assets.