The BSE Bankex was down 1.77 per cent at 19,290 in the morning trade (at 10.32 am). (Photo: PTI)
Bank stocks fell on Tuesday after HDFC Bank cut its base rate by 35 basis points to 9.35 per cent with effect from September 1. According to analysts, after this cut most banks base rates are 35-65 bps higher than HDFC Bank and they will have to take some hit on net interest margins (NIMs) if they match it.
The BSE Bankex was down 1.77 per cent at 19,290 in the morning trade (at 10.32 am).
Stocks of Punjab National Bank dropped after Fitch downgrades viability rating by one notch to ‘bb’.
All the banking stocks in the BSE Bankex were trading in red. Punjab National Bank slid the most —3.11 per cent to Rs 140.35, it was followed by Yes Bank (down 2.76 per cent at Rs 670.50), Axis Bank (down 2.12 per cent at Rs 495.95), Kotak Mahindra Bank (down 2.10 per cent at Rs 637.25). HDFC Bank was down 1.79 per cent at Rs 1009.70.
IDBI Bank, down 2.15 per cent, is also vulnerable to a downgrade given deterioration in the stressed asset ratio, Fitch adds.
(With inputs from Reuters)
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