PSU banks at new lows

Currently, amongst the top five losers on the BSE, four are PSU banks – Central Bank of India (CBI) is down almost 11.5%, hitting a new 52-week low at Rs.53.75. Allahabad Bank also hit a new low at Rs.45.40. Dena Bank hit a 52-week low too at Rs.28.10. PNB was also at a new low at Rs.79.90.

All these banks declared dismal Q3FY16 numbers with a major dent in profitabilities and asset quality also showing a lot of deterioration. CBI reported a net loss of Rs.837 crore and its Gross NPA jumped up from 6.2% to 8.95% (YoY).

Allahabad Bank also reported loss of Rs.486 crore v.s net profit of Rs.164 crore (YoY). PNB just about managed to stay in the profit though it showed a 80% drop in net profit and major fall in asset quality. Dena Bnak also reported a loss of Rs.662 crore v/s net profit of Rs77 crore in previous Q3.

Almost all PSU bank stocks are deep in the red today as there is mounting worry once again about their profitability as well as asset quality.