Private Banking Shares Drag Nifty Bank Down As Public Sector Banks Perform Well

Private Banking Shares Drag Nifty Bank Down As Public Sector Banks Perform Well

The shares of HDFC Bank at the halfway mark dropped by 4.21 per cent or Rs 72.70, dropping to Rs 1,654.45 per share. Kolkata-based Bandhan Bank was the second biggest loser, with a decline of 1.32 per cent or Rs 2.75, with the total value dropping to Rs 205.31.

Juviraj AnchilUpdated: Friday, July 05, 2024, 01:22 PM IST
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Closing Bell: Indices end negative; Sensex down 301 points, Nifty around 17000 | Image: Wikipedia (Representative)

One of the most important Indices in India, Nifty Bank, appears to following the path of the marquee indices, the BSE Sensex and NSE Nifty. This, as, Nifty bank, like the aforementioned indices, is trading in red.

Nifty Bank Dwindles

An interesting fact about this decline is that the performance of one end of the banking spectrum, compared to the others, is bringing the overall index down.

Nifty Bank dipped by over 1 per cent earlier in the trading session.

On Friday, July 5, HDFC Bank recently released data on gross advance and credit-to-deposit ratio. The gross advance of the Mumbai-based bank rose by over 52 per cent. Nevertheless, HDFC's credit-to-deposit ratio remained a reason for concern, as the ratio remained at 105 per cent.

On Friday, July 5, HDFC Bank recently released data on gross advance and credit-to-deposit ratio. The gross advance of the Mumbai-based bank rose by over 52 per cent. Nevertheless, HDFC's credit-to-deposit ratio remained a reason for concern, as the ratio remained at 105 per cent. | File Photo

Here, the reference is to the stocks of private lenders listed on the market. Major names, including HDFC Bank and ICICI Bank, led this collective slump. AU Bank, along with IndusInd Bank, were also amongst the shares that were on the decline.

On Friday, July 5, HDFC Bank recently released data on gross advance and credit-to-deposit ratio. The gross advance of the Mumbai-based bank rose by over 52 per cent. Nevertheless, HDFC's credit-to-deposit ratio remained a reason for concern, as the ratio remained at 105 per cent.

Indusind bank also lost 0.51 per cent or Rs 7.35, dropping to Rs 1,435.50. ICICI bank lost 0.15 per cent or Rs 1.80 declining to Rs 1,231.20. AU Bank also lost 0.08 per cent.

Interestingly, this is happening on a day when major PSBs, including the State Bank of India, Bank of Baroda and Punjab National Bank, made noticeable gains. Amongst the three, PNB was the biggest gainer, with a rise of 1.27 per cent or Rs 1.54, climbing to Rs 123.05.

Interestingly, this is happening on a day when major PSBs, including the State Bank of India, Bank of Baroda and Punjab National Bank, made noticeable gains. Amongst the three, PNB was the biggest gainer, with a rise of 1.27 per cent or Rs 1.54, climbing to Rs 123.05. | Pixabay (Representational Pic)

Major PSB Shares Climb

Interestingly, this is happening on a day when major PSBs, including the State Bank of India, Bank of Baroda and Punjab National Bank, made noticeable gains. Amongst the three, PNB was the biggest gainer, with a rise of 1.27 per cent or Rs 1.54, climbing to Rs 123.05.

The largest bank in the country was second in line, with a jump of 1.13 per cent or Rs 9.50, taking the total value to Rs 848.80. Meanwhile, Bank of Baroda gained 0.72 per cent or Rs 1.95, taking the overall value of individual shares to 272.10.

At 13:13, the Nifty Bank lost 1.12 per cent or 597.15 points, slipping to 52,506.55.

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