Shares of most banking companies, especially private sector ones, traded with losses in the intraday trade on June 4.
The Nifty Bank index was 2.22 percent down at 20,475 around 13:55 hours, with 10 stocks in the red and two in the green.
Nifty Private Bank index was 2.61 percent down at 11,184.90 with all stocks in the red at that time. However, the Nifty PSU Bank index was 1.79 percent up at 1,307.40 with 10 stocks in the green and 2 in the red at that time.
Shares of RBL Bank and Bandhan Bank cracked up to 6 percent, while those of IndusInd Bank, Axis Bank and IDFC First Bank was down up to 4 percent. Shares of heavyweights, such as ICICI Bank and HDFC Bank were down about 2 percent.
related news
Among the PSU banks, shares of Indian Overseas Bank, Punjab & Sind Bank and Punjab National Bank surged up to 9 percent. Shares of State Bank of India traded with minor losses.
“Banks and financial institutions are mere intermediaries between depositors and borrowers. There are withering criticism and protests that banks have to face when there is mere talk of delay or default in payments to its depositors. If paying depositors on time and in full is the holiest of a holy cow in India then all the stakeholders better appreciate that the other end of the contractual obligation i.e. banks receiving their dues from borrowers on time and in full has to be fulfilled or else the system will weaken considerably and eventually collapse,” said Ajay Bodke, CEO (PMS), Prabhudas Lilladher.
“Living in a utopian world and delivering moral sermons without being sensitive to the plight of depositors by insisting on waiver of borrowers’ contractual obligations is bound to cause irreparable harm to the banking sector and the Indian economy,” Bodke said.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management.
Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Options Trading Simplified webinar by Mr. Vishal B. Malkan. Watch Now!
