INSUBCONTINENT EXCLUSIVE:
MUMBAI: Shares of PSU banks shrugged off worries over possible losses from Vodafone Idea's precarious financial position and rallied on
Central Bank of India, State Bank of India, Bank of India and Syndicate Bank led the gains on the index, rising 4-9%.
Analysts said most
banks have provided significantly for their exposures to Essar Steel and given the recovery rate of around 90%, there should be significant
The brokerage said recovery for banks in the Essar Steel case will be closer to 90% versus 60% as suggested by the NCLAT
State Bank of India, which has claims of over Rs 13000 crore on Essar Steel, will be the biggest beneficiary of this, followed by ICICI Bank
which has direct exposure of Rs 2,300 crore and some claims through security receipts held with Edelweiss ARC, the brokerage said.
The
setting aside of the earlier NCLAT ruling is a significant course correction, and financial creditors which had been impacted are now better
