Thursday, 6 November 2008

Banking stocks fall as SBI expresses concern over liquidity

Banking stocks fell by 2.5 to 6.5 per cent after the country's largest lender, State Bank of India expressed concern over liquidity in the I
ndian banking system.

Despite government's continued efforts to ease liquidity and advising lending rate cut, banks are facing the challenges of liquidity availability, says a banking analyst with a foreign broking company.

“Indian banking system does have a problem of lack of liquidity,” chief executive of SBI, O.P. Bhatt, said in a banking seminar on Thursday.

Brokers said that market is experiencing another sharp downtrend on worries over global economic recession that would have possible impact on Asian economies, especially the emerging economies.

At 11:00 am, BSE Bankex was down 2.12 per cent led by Yes Bank down by nearly 6.5 per cent. Frontline banks including SBI and ICICI Bank were down by 3 per cent at Rs 1236 and Rs 437, respectively. HDFC Bank was down by 1.76 per cent to Rs 1075.

Source: EconomicTimes

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