Several bank stocks came under pressure amid a broad market sell-off on November 21, exacerbated by news of US federal prosecutors alleging bribery charges against Gautam Adani and other group executives, traders said. Barring two banking stocks—HDFC Bank and Federal Bank—all bank stocks were in the red as trade sentiment remained predominantly bearish. Bank of Baroda, Punjab National Bank (PNB), Canara Bank, State Bank of India (SBI), and IDFC First Bank were the top five losers among the Nifty Bank stocks.
Shares of major public sector banks, including State Bank of India, Bank of Baroda, Bank of India, Central Bank of India, Union Bank of India, REC Limited, and IDBI Bank, fell by 4–8% as of 10:35 a.m. on November 21. Private sector banks, however, fared relatively better.
Following the allegations in the Hindenburg report in January 2023, several Indian banks and financial institutions disclosed their exposure to the Adani Group. At that time, Life Insurance Corporation (LIC) revealed an exposure of Rs 35,920 crore, comprising Rs 30,130 crore in equity and Rs 5,790 crore in debt. State Bank of India, the country's largest lender, disclosed a total exposure of approximately Rs 27,000 crore to the group. Axis Bank reported Rs 9,220 crore, including non-funded exposure. Punjab National Bank and REC Limited each disclosed around Rs 7,000 crore, while Bank of Baroda and IndusInd Bank reported Rs 5,380 crore and Rs 4,150 crore, respectively. These figures may have changed since the initial disclosures.
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