Reuters Market Eye - Shares in public sector banks fall on concerns about liquidity in the banking system after the government set its target for gross market borrowing at 6.29 trillion rupees in 2013/14, above estimates of less than 6 trillion rupees.
The government also announced a capital infusion of 140 billion rupees for public sector banks, below market estimates for 200 billion rupees, dealers said.
State Bank of India fell 6 percent, Punjab National Bank (PNBK.NS) fell 5.5 percent and Bank of India (BOI.NS) falls 5.7 percent.
Private sector lenders also fall, with ICICI Bank (ICBK.NS) losing almost 4 percent, after Finance Minister P. Chidambaram proposed to extend a scheme that provides farmers with low cost loans to private banks.
Axis Bank (AXBK.NS) fell 4 percent while Yes Bank (YESB.NS) lost 3.8 percent.
(Reporting by Manoj Dharra)
Trending On Reuters
Nepalese officials scrambled on Monday to get aid from the main airport to people left homeless and hungry by a devastating earthquake two days earlier, while thousands tired of waiting fled the capital Kathmandu for the surrounding plains. Full Article