Shares in some of the biggest PSU Banks like State Bank of India, Punjab National Bank, Union Bank of India and Bank of Baroda fell to a new 52-week low.
Shares in State Bank of India dropped to a new 52-week low of Rs 161.80, while Punjab National Bank hit a new 52-week low of Rs 28. Bank of Baroda on the other hand slumped to Rs 39.65 and Union Bank of India fell to Rs 23.40.
|Name||New 52-week low|
|State Bank of India||Rs 161.80|
|Punjan National Bank||Rs 28|
|Bank of Baroda||39.65|
|Union Bank of India||Rs 23.40|
Rising Non Performing Assets leave investors worried
Banking quarterly numbers have been far from impressive. ICICI Bank and Axis Bank, two very large private sector banks, reported numbers that were below expectations. The high level of provisions left investors worried on what could be in store in the first quarter ending June 30, 2020.
Some other smaller banks like RBL Bank too did not report numbers that were great. It is likely that the quarterly numbers for the period ending June 30, 2020 would be terrible.
PSU banks are likely to perform even worse, which is why stocks from the sector have fallen even more. It is almost certain that some of the government owned banks may need fresh capital infusion.