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
People stranded in remote villages and towns across Nepal were still waiting for aid and relief to arrive on Tuesday, four days after a devastating earthquake destroyed buildings and roads and killed more than 4,600 people. Full Article | Pictures