Banking stocks edge up on RBI action on defaulters
Mumbai: Indian bank shares edged higher on Wednesday after the Reserve Bank of India (RBI) said it had identified 12 of the largest loan defaulters and will order lenders to start bankruptcy proceedings against them, without disclosing any account names.
Nifty PSU bank index rose by 0.79%. Allahabad bank closed higher by 7.08%, Andhra Bank rose by 4.3%, Syndicate Bank by 4.13%, IDBI 3.66%, Union Bank 2.49% and PNB by 2.05%.
While taking defaulters to bankruptcy proceedings will speed up resolution of bad loans, it may also require the capital-starved state-run banking sector to make higher provisioning, analysts said. Reuters