Bank shares tank after Moody's changes outlook on Indian banks to negative; RBL, Kotak, IndusInd top losers
Bank shares on Friday dropped up to 15 percent after Moody's Investors Service changed the outlook for the Indian banking system to negative from stable
New Delhi: Bank shares on Friday dropped up to 15 percent after Moody's Investors Service changed the outlook for the Indian banking system to negative from stable.
Shares of RBL Bank tumbled 14.99 percent, Kotak Mahindra Bank tanked 7.77 percent, IndusInd Bank fell 7.33 percent, ICICI Bank 6.56 percent, SBI 4.34 percent.
Also, City Union Bank slumped 4.21 percent, Axis Bank dipped 3.86 percent and Federal Bank 3.26 percent.
The BSE Bank index was quoting lower by 3.74 percent at 20,098.85.
Moody's Investors Service on Thursday changed the outlook for the Indian banking system to negative from stable, as it expects a deterioration in banks' asset quality due to disruption in economic activity from the coronavirus outbreak.
It said banks' asset quality will deteriorate across the corporate, small and medium enterprises and retail segments, leading to pressure on profitability and capital.
"We have changed the outlook for the Indian banking system to negative from stable. Disruptions to economic activity from the coronavirus outbreak will exacerbate a slowdown in India's economic growth," Moody's said.
End of Work from Home? Are TCS employees being forced to come to office?
TCS has begun delivering notes to staff members who don't put in at least 12 days of in-office work each month. The IT company reportedly threatened employees with disciplinary action if they failed to abide by its new policy. The firm is just one of the many that has put an end to work from home
No forms, ID cards needed for exchange of Rs 2,000 banknotes: SBI
The Reserve Bank of India on Friday decided to withdraw the Rs 2,000 denomination currency notes from circulation, but added that they will continue to remain legal tender
First day of Rs 2,000 currency exchange gets off to a rocky start across cities: What banks said
RBI governor Shaktikanta Das had on Monday said people should not panic and rush to return or exchange their Rs 2,000 currency notes as they have four months to do so. Even after September 30, the notes would continue to be legal, he asserted