NSE's While Nifty closed 55 points lower at 11,046, BSE Sensex ended day's trade at 37,451.84, at a decline of 189 points.
State-run Allahabad Bank on Tuesday announced linking of its retail loans with the Reserve Bank of India's repo rate in order to make them cheaper. The repo rate is the rate at which the Reserve Bank of India (RBI) lends money to other banks.
In a regulatory filing, Allahabad Bank said it has benchmarked its loans up to Rs 75 lakh with the external benchmark linked rates (EBLR) with effect from September 1, 2019.Allahabad Bank, PNB link loan products to repo rate
IDBI Bank Ltd’s shares plunged as much as 9.3% after the credit rating firm S&P Global on Tuesday placed the private lender's unsecured debt rating on ‘credit watch negative’ for breaching its regulatory capital requirement.
Private sector lender IDBI Bank on Tuesday said S&P Global Ratings has placed its foreign currency issuer credit ratings on credit watch with negative implications. The action reflects the uncertainty regarding the bank's ability to meet its regulatory capital requirement over the next few months.
IDBI Bank shares plunged as much as 9.3% after the credit rating firm S&P Global on Tuesday placed the private lender's unsecured debt rating on 'credit watch negative' for breaching its regulatory capital requirement.
S&P Global Ratings has, however, said that the breach could be temporary because IDBI Bank is in the process of raising capital from the government and LIC to clean up its balance sheet and replenish its capitalisation.
"We aim to resolve the credit watch in the next three months once we have clarity on the bank's plan and the timeline for shoring up its capital base, such that it maintains a sufficient buffer above the regulatory minimum," S&P said.IDBI Bank share plunges over 11% as S&P puts lender on 'credit watch'
At the interbank foreign exchange, Indian rupee, the domestic currency was trading lower at 71.79 against the American currency at 0147 hours.
The Indian rupee on Tuesday had closed at 71.48 against the US dollar.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today