Published: Tue, March 13, 2018
People | By Leon Thompson

Andhra Bank pegs Sterling exposure at Rs 578 crore after shares dive

Andhra Bank pegs Sterling exposure at Rs 578 crore after shares dive

Shares of other state-owned banks too rallied on optimism.

On Monday, the stock had closed almost 7% lower on reports that the Enforcement Directorate filed a prosecution complaint against former director Anup Prakash Garg in a Rs5,000cr bank fraud case involving Sterling Biotech Ltd.

On Monday, shares of Andhra Bank tumbled after the Enforcement Directorate filed a charge sheet against Anup Kumar Garg, a former director of the bank for his alleged involvement in a scam worth over Rs 5000 crore with regard to money lent by a consortium of bankers to Sterling Biotech Limited.

Shares of Bank of India surged after reports emerged that the public lender has recovered Rs 7,000 crore of non-performing assets.

Bank of India executive director N. Damodharan said the recovery will substantially improve the bank's balance sheet, PTI reported.

Court rules it can't force Bank of Baroda to stay open
In January, Nedbank informed the Bank of Baroda that it would terminate its relationship with the bank in three months. The High Court has ruled it simply can not force a company to keep its doors open against its will.

In the December quarter, Bank of India reported a loss of Rs2,341.20 crore, while its gross NPA was at 16.93% for the quarter against 13.38% year-on-year.

India's retail inflation eased to 4.44 percent in February from 5.1 percent in January, but remained above the 4 percent medium-term target of the Reserve Bank of India. So far 2,10,28,151 (NSE+BSE) shares were traded on the counter.

Financial stocks led the gains on the gains, with the Nifty PSU bank index rising as much as 3.8 percent.

The Nifty PSU Bank index slipped 2.2 per cent and it was the lone loser among sectoral indices as against the Nifty 50 index. The index has shed about 14% in the last thirty days. Even private sector bank stocks are trading higher today, thanks to the improved sentiment. Punjab National Bank rose 4.2 percent and Andhra Bank gained 5.9 percent.

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