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Bank shares fall on budget disappointment
February 28, 2013 / 9:49 AM / 5 years ago

Bank shares fall on budget disappointment

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.

A cashier (L) counts currency notes as customers wait inside a bank in Hyderabad March 22, 2010. REUTERS/Krishnendu Halder/Files

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

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