private lender Yes Bank topped the list of worst-performing banks with a degrowth of 48.63 percent in Q3 2020
Smaller banks from Bangladesh, Pakistan and China emerged as the best-performing banking stocks in Q3 2020, while its Indian peers logged the worst total returns, according to data by S&P Markets Intelligence.
According to the analysis, 16 of the 20 largest banks in the Asia-Pacific region saw declines in their market capitalisation in Q3. "Indian bank stocks have been on a declining trend in 2020, with major lenders falling between 12 percent to more than 50 percent between January 1 and August 31," the report said.
While Bangladesh's City Bank topped the list for the best performing banks, posting a total return of 66.52 percent for this quarter, private lender Yes Bank topped the list of worst-performing banks with a degrowth of 48.63 percent for the quarter.
Other Indian banks which featured on the list were Punjab & Sind Bank, Indian Overseas Bank, Union Bank of India, IDBI Bank, Central Bank of India, Punjab National Bank, Jammu & Kashmir Bank, UCO Bank, and Bank of India, all of which posted double-digit negative returns in Q3.
The COVID-19 pandemic had affected the valuation of banks in India, China and other countries as uncertainty around the situation built, the analysis noted.
This stark contrast between the developing economies of Bangladesh and India is significant, as Kaushik Basu the former Chief Economist of the World Bank, raised an alarm after the International Monetary Fund (IMF) projected that Bangladesh would overtake India in real gross domestic product (GDP) per capita in 2021.
Tweeting his concern that India “which had a lead of 25 percent five years back is now trailing,” Basu called for “bold fiscal or monetary policy.”
As per the report, Bangladesh is set to beat India in terms of per capita GDP in CY20 and is expected to grow 4 percent in 2020 to $1,888. India’s per capita GDP, on the other hand, is expected to decline 10.5 percent to $1,877 – the lowest in the last four years, thanks to the COVID-19 pandemic and the ensuing lockdown.