RBI’s restructured loan framework pulls down PSU bank stocks.
In a major overhaul for resolution of NAPs (Non Performing Assets), the Reserve Bank of India has revised the new stressed assets framework asking banks to resolve defaults to 180 days. More than INR.2 lakh Cr worth of stress loans may be headed to bankruptcy court after RBI dumped various restructuring schemes like Strategic Debt Restructuring (SDR), Scheme for Sustainable Structuring of Stressed Assets (S4A), Corporate Debt Restructuring (CDR), and Joint Lender’s Forum (JLF) pronounced the bankruptcy courts as the final arbiter of a defaulting company’s future.
Reacting to the Reserve Bank of India’s move to scrap various loan restructuring programs that may entail higher provisioning expense, and subsequently, would hit their profits in FY 2019, most of the PSU bank stocks ended in a negative row.
| Name Of The Bank | NSE | BSE |
| Allahabad Bank | -8.05 % | -7.79 % |
| Andhra Bank | -4.00 % | -3.90 % |
| Axis Bank | -3.97 % | -3.35 % |
| Bank Of Baroda | -2.82 % | -1.75 % |
| Bank Of India | -7.97 % | -7.87 % |
| Canara Bank | -5.96 % | -5.82 % |
| ICICI Bank | -2.64 % | -2.29 % |
| IDBI Bank | -4.15 % | -4.22 % |
| KVB | -1.40 % | -1.74 % |
| Oriental Bank Of Commerce | -8.35 % | -7.43 % |
| PNB | -10.39 % | -9.81 % |
| State Bank Of India | -4.59 % | -4.06 % |
|
Union Bank Of India |
-4.95 % | -4.90 % |
| Yes Bank | -4.79 % | -4.40 % |
Whereas banks like Dhanalakshmi Bank gained BSE (+3.76%), NSE (+2.48%) and HDFC Bank registered a nominal gain of NSE & BSE (+0.17%)
