16
Monday
September 2019
11:42 AM IST
News Headlines
Sourabh wins Vietnam Open Super 100 title        England close in on Ashes-levelling win after Broad double        Air India posts Rs 4,600 cr operating loss in 2018-19; aims operating profit this fiscal        SBI to move RBI to offer fixed-floating rate home-loans: Chairman        Hong Kong returns to violence with tear gas and Molotovs        36 people missing after boat sinks in Congo river: DRC police        Underfire PM calls up Hulk, claims 'huge' Brexit progress        Dearth of quality people in north India: Labour minister on unemployment        Will implement NRC in Haryana, says Khattar        One nation-one language will never be a reality: Jairam Ramesh        21 Indians killed in 2,050 ceasefire violations by Pak this year: MEA        We need to take advantage of India's inexperienced pace attack: Klusener        India's contrasting training camps at World Championships        Inflation under control, clear signs of revival in factory output: FM        China to lift punitive tariffs on US soybeans, pork        Former PM Cameron 'sorry' for Brexit divisions        Pakistani cleric Tahirul Qadri quits politics, resigns from party        Afghan government says elections first, peace deal after        My govt committed to the welfare of peasants & also to promote industry: Mamata        Amend Constitution to ensure use of Indian languages in SC, high courts: Paswan        
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Business News
PSB stocks plunge up to 9.3 pc post merger announcement
 
New Delhi, Sep 3 (PTI) Public sector bank stocks, led by Corporation Bank and Punjab National Bank, tumbled up to 9.3 per cent on Tuesday after the government announced the merger of 10 state-run lenders into four.

Shares of Corporation Bank tanked 9.28 per cent to Rs 17.10, Punjab National Bank plunged 8.54 per cent to Rs 59.40, Canara Bank dropped 7.54 per cent to its one-year low of Rs 203.90.

Oriental Bank of Commerce cracked 7.34 per cent to Rs 68.10, Union Bank of India 6.79 per cent to its 52-week low of Rs 54.90, Allahabad Bank declined by 2.83 per cent to Rs 34.30 and United Bank 0.28 per cent to Rs 10.39 on the BSE.

However, Andhra Bank rose 5.31 per cent to Rs 20.80 and Syndicate Bank gained 3.55 per cent to Rs 33.50.

Equity markets were closed on Monday for 'Ganesh Chaturthi'.

Continuing its firefight against the deepening economic slowdown, the government on Friday unveiled a mega plan to merge 10 public sector banks into four with a view to creating fewer and stronger global-sized lenders with robust balance sheets that can be used to boost credit and spur growth.

The mergers announced on Friday, together with two set consolidations done last year, will reduce the number of public sector banks to 12 from 27 in 2017.

Oriental Bank of Commerce and United Bank will merge with Punjab National Bank to create the nation's second-largest lender behind State Bank of India. Also, Syndicate Bank will merge with Canara Bank while Andhra Bank and Corporation Bank would subsume into Union Bank of India, and Allahabad Bank will be amalgamated with Indian Bank.

According to Emkay Global, the merger of Canara and Syndicate could be relatively less disruptive in terms of integration... Being a strong mid-sized bank, Indian Bank was always susceptible to merger, but the merger with Allahabad Bank instead of IOB will be less painful.

However, it could be challenging due to cultural and geographical diversity with Allahabad Bank and its relatively weak asset quality.

PNB has been inherently weak and the merger could further aggravate and prolong the pain. Being a perennially capital-starved bank, Union Bank should benefit on the capital front due to the merger and has also been graced by the government with a healthy capital infusion, but that being said the merger will still be painful as a result of the geographic and cultural diversity of the merging entities.


Air India posts Rs 4,600 cr operating loss in 2018-19; aims operating profit this fiscal
SBI to move RBI to offer fixed-floating rate home-loans: Chairman
Inflation under control, clear signs of revival in factory output: FM
China to lift punitive tariffs on US soybeans, pork
Exports decline 6 pc; imports dip 13.45 pc
Retail inflation inches up to 10-month high of 3.21 pc in August
India & Qatar to focus on hydrocarbon sector: Pradhan
Samruddhi Corridor: MSRDC ties up loans of Rs 28,000 crore
Just 19 pc employers in India bullish on hiring in Oct-Dec qtr: Survey
Alibaba's Ma steps down as industry faces uncertainty
Ahead of festivals, SBI again cuts lending rates by 10 bps
Sensex drops over 150 pts; bank, auto stocks drag
15th Finance Commission holds meeting with Raj bodies, industry
PNB puts up for sale 11 NPA accounts to recover dues of Rs 1,234 cr
States to be key drivers of growth for making India USD 5 trillion economy: Niti CEO
FinMin sets up task force to identify infra projects for Rs 100 lakh cr investment
To create jobs, C'garh govt reduces land rates for industries
India's domestic market for computer services to grow faster than exports: UN report
Indian equities subdued; banking, IT stocks top drag
Ambani rolls out JioFiber, offering minimum 100 Mpbs internet speed for Rs 699 a month
KERALA NEWS
Tipplers guzzle Rs 487 crore worth liqour during onam
 Thiruvananthapuram: Tipplers in Kerala guzzled liqour worth a record Rs 487 crore sold through state  
candidate selection for Pala by-election is an internal matter of KC(M): Chandy
Kevin Murder Case: Double life sentence for all 10 convicts
Malayalam actor, film crew stranded in Himachal village
INTERNATIONAL NEWS
Hong Kong returns to violence with tear gas and Molotovs
 Hong Kong: Hong Kong riot police fired tear gas and water cannons at hardcore pro-democracy proteste
36 people missing after boat sinks in Congo river: DRC police
Underfire PM calls up Hulk, claims 'huge' Brexit progress
Former PM Cameron 'sorry' for Brexit divisions
NATIONAL NEWS
Dearth of quality people in north India: Labour minister on unemployment
 Lucknow: Union labour minister Santosh Kumar Gangwar has said there was no dearth of employment oppo
Will implement NRC in Haryana, says Khattar
One nation-one language will never be a reality: Jairam Ramesh
My govt committed to the welfare of peasants & also to promote industry: Mamata
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