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Market Update

Banks Report Rising Bad Loans in India

Author: Mukesh Buch
Last Update: 8:01 AM ET February 03 2015

6:00 PM Mumbai – Punjab National Bank was the latest casualty among the large banks and reported gross non-performing assets nearly doubled to 5.97%. Hero MotoCorp January vehicle sales edged lower following an increase in excise tax.

Stocks in Mumbai traded lower after Punjab National Bank reported a sharp jump in non-performing loans.

The government controlled bank was the latest to join other large public sector banks reporting rising bad loans after the economy slowed in the last two years and businesses struggled to pay interests and loans.

Bank of Baroda, the second largest public sector bank reported last week a surge in bad loans after several large customers fell behind in payments.

Indian rupee closed at 61.67 against one dollar.

The Sensex Index slipped 122.13 to close at 29,000.14. The CNX Nifty fell 40.85 to 8,756.55.

Gainers & Losers

ACC Limited decreased 1% to ₹1,510.60 after the cement maker said net in the fourth-quarter climbed 18.32% to ₹326.22 crore.

Net revenues rose 1.23% to ₹2,879.68 crore.

Britannia Industries Ltd rose 0.9% to ₹1,923.15 after the bakery and dairy products maker reported net in the third-quarter surged 36.5% to ₹137.22 crore.

Net revenues climbed 13.4% to ₹2,033.28 crore.

Hero MotoCorp Limited decreased 0.8% to ₹2,812.35 after the largest motorcycle maker said sales in January slid 0.4% to 5,58,982 units compared to 5,61,253 in the same period last year.

Indian Oil Corporation Limited dropped 2.6% to ₹331 after the petroleum product maker plans to invest ₹5,300 crore to set up an LPG import facility in Odisha.

JSW Energy Limited tumbled 8.9% to ₹113.15 after the integrated power company said net in the third-quarter surged 87% to ₹380.19 crore.

Total revenues jumped 11% to ₹2,380.83 crore.

Lupin Limited fell 0.7% to ₹1,545.30 after the pharmaceutical product maker reported net in the third-quarter soared 26.32% to ₹601.45 crore.

Total revenues advanced 6.76% to ₹3,261.04 crore.

Punjab National Bank plunged 7.9% to ₹176.75 after the financial service provider reported net in the third-quarter increased 2.53% to ₹774.56 crore. Total revenues rose 8.24% to ₹12,904.85 crore.

The bank’s ratio of gross non-performing assets rose to 5.97% compared to 2.65% in the same period last year.

Shanthi Gears Limited declined 4% to ₹136.75 after the gear systems maker reported net in the third-quarter dropped 18.61% to ₹3.76 crore.

Total revenues added 3.29% to ₹42.98 crore.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc