Welcome to Contify Banking
Last Update: Mon, May 21, 2012 7:36 AM IST (2:06 AM GMT)
IN THIS STORY
TOPICS
COMPANIES
INDUSTRIES
New Delhi: Indian banks' stocks nosedived Wednesday over fears that a reported fresh loan arranged by State Bank of India to the beleaguered private sector carrier Kingfisher Airlines Ltd will further inflate the lenders' provisioning for bad loans and thereby impact profitability.
State Bank of India, which leads the consortium of lenders to Kingfisher Airlines, also led Wednesday's fall in banking stocks, dropping nearly 8% and adding to gloom in the already bearish market after enjoying a bullish run for the last couple of days.
Other public sector lenders like Punjab National Bank, IDBI Bank and Bank of Baroda, which are also part of the consortium shed 4.62%, 6.92% and 5.88%, respectively, even as close associates of these banks did not confirm any immediate lending to the carrier, which has never made a profit since it started operations in 2005.
Earlier Wednesday, the Hindustan Times reported that State Bank of India has decided to lend Rs 16.5 billion to the airline.
ICICI Bank, the country's largest private sector lender, which also has an equity stake in Kingfisher Airlines fell 3.42%, while Axis Bank plunged 5.47%.
The Bombay Stock Exchange's benchmark Sensex fell 1.54% in late afternoon trade to close at 18,145.25.
RELATED COMPANIES
ICICI Bank Ltd is an Indian banking and financial services company. It is a privately-owned company. ICICI Bank was established in the 1994 by Industrial Credit and Investment Corp of India to ca ...
Read More..
State Bank of India is the country's largest banking and financial services company. It is a state-run company, with the Indian government holding 59.4% of its equity stake. The State Bank of Ind ...
Read More..
Axis Bank is an India-based company. The company was established in 1994 and was formerly known as UTI Bank. The company provides services such as deposits, loans, cards, forex, investments, insu ...
Read More..
IDBI Bank is an India-based company. The company was established in 1964. It is a company which formerly acted as a development financial institution. However, after October 1, 2004 the company s ...
Read More..
Punjab National Bank is an India-based company. The company was established in 1895. It is a company started before India attained her independence. Punjab National Bank offers personal banking, ...
Read More..Kingfisher Airlines Ltd is an India-based company. It offers scheduled and unscheduled aircraft passenger and cargo services, including charter services. The company also offers three classes of ...
Read More..
Bank of Baroda is an India-based company. The company was established in 1908. It is a state-owned financial services company. Bank of Baroda was nationalized in 1969 along with 13 other major co ...
Read More..RELATED STORIES
Follow us:
Contify is a leading content aggregation and an emerging business information company based in India. Launched in April 2009, the company has partnerships with over 280 leading and niche publications of the country, and distributes over 3,000 business news stories to global information databases like Dow Jones Factiva, Thomson Reuters, LexisNexis and Bloomberg on a daily basis.
Contify also has a strong in-house editorial team, which covers information on a range of industry verticals like banking, energy and retail as well as key government policies related to India’s business environment. The company's portfolio of information products is aimed at helping business professionals keep themselves up-to-date with the important news and events in India’s corporate arena.
