23
Thursday
January 2020
3:46 PM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
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.


Looking to build new businesses in India on top of existing verticals: Canon
Rupee strengthens 2 paise to 71.19 on easing crude prices
Budget will have 'plan of action' on economy: Javadekar
India, Iran should work to expedite Chabahar Port development, connectivity to Afghanistan: Zarif
Forex reserves rise by USD 58 mn to record high of USD 461.21 bn
India, US in advance-stage talks to resolve trade issues: Goyal
Gadkari urges states to come forward in the drive for curbing accidents
IndusInd Bank down 5.44 pc to Rs 1400.60
Rupee up by 7 paise against USD
CCI directs probe against Amazon, Flipkart
Panic stricken depositors mill around bank after RBI caps withdrawal limit
US removes currency manipulator label on China ahead of inking of trade deal
Flipkart opens two warehouses in Haryana, to create over 5,000 local jobs
Rupee cuts short 5-day gaining streak; edges down 1 paise to 70.87 against dollar
Rupee extends gains by 8 paise to 70.86 against US dollar
Centre to set up panel to examine issues on royalty rates for major minerals
Tata Motors global sales dip 3 pc dip to 97,348 units in Dec
Huawei exec can be extradited to US, Canada attorney general says
Sebi brings new system audit norms for exchanges, clearing corporations
Oil PSU unions oppose BPCL disinvestment
KERALA NEWS
Kerala set to get two fab labs
 Kochi: Kerala will get two new fab labs this weekend when Chief Minister Pinarayi Vijayan inaugurate  
Sabarimala pilgrimage season ends peacefully
Mortal remains of Keralites to bring back quickly, says Union Minister V Muraleedharan
Kerala govt will continue fight against CAA: Minister
INTERNATIONAL NEWS
Trump trial opens with clash over witnesses
 Washington: The historic impeachment trial of US President Donald Trump opened with fireworks Tuesda
Trump 'would have loved' to have met Thunberg at Davos
China''s ex-Interpol chief sentenced to over 13 years in prison for corruption
Thousands of missing persons during Lanka''s civil war are ''dead'': President Gotabaya Rajapaksa
NATIONAL NEWS
India falls to 51st position in EIU's Democracy Index
 New Delhi: India slipped 10 places to 51st position in the 2019 Democracy Index's global ranking, ac
Plea filed in Delhi HC seeking contempt proceedings against 'Chhapaak' makers
Centre moves SC seeking 7-day deadline for hanging death row convicts
Court modifies Azad''s bail order, allows him to visit Delhi for medical, election purposes
Untitled Page
Rashtra Deepika LTD
Copyright @ 2020 , Rashtra Deepika Ltd.