November 20, 2018 / 5:01 AM / 3 months ago

BUZZ-India's PSU banks fall after RBI board meet

** Shares of state-run banks fall about 1 pct, a day after the central bank board meeting

** Nifty PSU bank index drops as much as 1.7 pct, in its biggest single-day pct loss in a week

** The Reserve Bank of India (RBI) on Monday decided to set up an expert panel to examine the economic capital framework of the central bank, in a move that could prompt a rethink of what constitutes adequate capital reserves for the RBI

** Jefferies analysts believe outcomes were fairly logical “although by no means conclusive”

** “Additional capital infusion would be required should the government want the banks to push balance sheet growth” - Jefferies

** Morgan Stanley calls the takeaways from the meeting as a “temporary relief” for state-run banks, but govt will have to raise recapitalisation amount for sustained improvement in growth

** HSBC says in a note that tensions may have subsided, indicating broad alignment

** Bank of India and Union Bank of India Ltd down 1.3 pct each while State Bank of India down 0.8 pct

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