June 4, 2018 / 6:35 AM / a year ago

BUZZ-India's Bank of Baroda falls; govt considers merging 4 state-run banks - report

(Adds disclosures, updates stocks)

** Bank of Baroda Ltd, India’s third-biggest state-run lender by assets, falls as much as 4.3 pct to 131 rupees, in its sharpest intraday fall since May 16

** Govt considers merging at least four state-run banks - Bank of Baroda, IDBI Bank Ltd, Oriental Bank of Commerce Ltd and Central Bank of India Ltd, reports here the Mint daily

** Bank of Baroda, IDBI Bank, Oriental Bank of Commerce and Central Bank of India were not immediately available for comment

** Big banks like Bank of Baroda and SBI already have a lot of stress and when small banks like IDBI Bank are merged with the big ones, that will put a lot of pressure on them and it’s a big negative for the stock, says Yuvraj Choudhary, an analyst at Mumbai-based brokerage Anand Rathi

** Shares of IDBI Bank, which has the worst bad-loan ratio among all Indian lenders, fell 1.5 pct, while Oriental Bank of Commerce and Central bank of India were down 1 pct and 0.3 pct respectively

** Bank of Baroda has fallen nearly 15 pct this year as of Friday

** India’s banks, burdened by 9.5 trillion rupees ($141.64 billion) of bad loans at the end of 2017, saw a further surge in bad loans in March quarter after the central bank withdrew half a dozen restructuring schemes and tightened other rules

$1 = 67.0700 Indian rupees

0 : 0
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