SBI, BoB, PNB stocks fall on ratings cut

 

Shares of State Bank of India (SBI), Bank of Baroda (BOB) and Punjab National Bank (PNB) on Tuesday fell 1.3% after two global agencies - Moody's and Fitch - downgraded their the debt rating

Moody's had on Monday slashed SBI's senior unsecured debt and local currency deposit rating by a notch to Baa3 from Baa2, citing asset quality and recapitalisation concerns.
The bank's scrip ended the day down 0.3% to Rs. 1,647 on the Bombay Stock Exchange. PNB shares fell 0.04% to Rs. 484, while BoB settled the day with a loss of 1.3% at Rs. 505. These stocks had lost over 3% in morning trade.
Fitch Ratings had also downgraded the viability ratings of PNB and BoB by one notch to 'bb+' from 'bbb-' but retained their long-term issuer default ratings at 'bbb-'.
SBI's revised rating for the senior unsecured debt and local currency deposit instruments would now be Baa3 from the earlier Baa2, Moody's said, while revising down its outlook on the bank's financial strength rating to negative from stable.    
The benchmark Sensex meanwhile gained for the first time in three days, adding 19 points, or 0.1%, to 19,920, after a choppy session ahead of the expiry of futures and options contracts. The rupee also weakened 15 paise to close at 62.75 against the US dollar.
NITESH KUMAR
PGDM 1 ST