Explore Now
NEW DELHI: Government-owned banks were hammered mercilessly on Monday on fears that the return of state-wide lockdowns, like one widely speculated in Maharashtra, could dent asset quality and loan growth going ahead.
Nifty PSU Bank plunged 9.26 per cent led by
Indian Bank, Canara Bank, Punjab National Bank and Bank of India that dropped over 10 per cent each in a single session. .
Investors are already concerned about the extent of the impact of the national lockdown on balance sheets of banks, and the renewed Covid restrictions have augmented those fears.
“The gap-down opening on Monday's trade widened as the day progressed with all sectoral indices in the red as investors worried about the economic fallout on account of the surge in coronavirus cases. Asset quality concerns spooked banks and PSU stocks across sectors were the worst hit amidst lockdown worries,” said S Ranganathan, Head of Research at LKP Securities.