Bank shares fall on budget disappointment

Bank shares fall on budget disappointment

Last Updated: Thu, Feb 28, 2013 10:41 hrs
A cashier counts currency notes as customers wait inside a bank in Hyderabad

Shares in public sector banks fall on concerns about liquidity in the banking system after the government set its target for gross market borrowing at 6.29 trillion rupees in 2013/14, above estimates of less than 6 trillion rupees.

The government also announced a capital infusion of 140 billion rupees for public sector banks, below market estimates for 200 billion rupees, dealers said.

State Bank of India lls 5.4 percent, Punjab National Bank is down 6.6 percent and Bank of India falls 6 percent.

Private sector lenders also fall, with ICICI Bank down 3.5 percent, after Finance Minister P. Chidambaram proposed to extend a scheme that provides farmers with low cost loans to private banks.

Axis Bank is down 4.3 percent while Yes Bank is 4.3 percent lower.

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