Fall in PSBs' market exposure

NEW DELHI, NOV. 16. Scams, September 11 attacks on World Trade Center and a overall depressed sentiment have resulted in fall in public sector banks' exposure in capital market to about Rs. 22,730 crores in the first half against Rs. 22,930 crores in March 2001.

The public sector banks, including SBI, have increased their investments in shares slightly to Rs. 4,089 crores during the first half of this fiscal as against Rs. 3,984 crores but their investments in mutual funds and advances against shares have dipped, official sources said.

SBI topped the list of 27 banks in terms of investment in shares to the tune of Rs. 1,381 crores till September as against Rs. 1,324 crores in March 2001, but it is yet to advance any loans against shares.

SBI and its seven associates invested a total Rs. 1,636 crores till September as against Rs. 1,564 crores in March.

SBI was followed by Bank of Baroda, Bank of India, Punjab national bank with over Rs. 300 crores investment in shares.

Central Bank of India, Canara Bank and Indian Overseas Bank's investments in shares were over Rs. 100 crores.

In contrast to shares, SBI and its associates had more or less shied away from debentures. The total investment of the group was a meagre Rs. 372.6 crores till September as against Rs. 347.5 crores in the end of last fiscal.

The PSE banks had a total investment of Rs. 10,473 crores in debentures till September as against Rs. 10,446 crores in March 2001.

SBI had also reduced its exposure in mutual funds and other instruments to Rs. 449.76 crores till September from Rs. 785 crores in the last fiscal end.

SBI group's exposure in mutual funds came down to Rs. 1,410 crores at the end of last half from Rs. 1,705 crores in March 2001. In case of other public sector banks, some have increased their exposure in debentures and mutual funds significantly in the last half.

The total exposure of 27 PSU banks in debentures went up to Rs. 10,845 crores during the first half from Rs. 10,793 crores last fiscal.

Bank of Baroda's exposure in debentures went up to Rs. 3,528 crores in the last half from Rs. 3,308 crores in the last fiscal.

Other banks whose exposure in debentures was more than Rs. 1,000 crores include Central Bank of India, Corporation Bank, Indian Bank and Syndicate Bank.

In case of mutual funds exposure, the PSE banks have reduced their overall exposure to Rs. 6,830 crores from Rs. 7,034 crores in the end of 2000-01.

United Bank of India's exposure was a whopping Rs. 2,105 crores till September as against Rs. 2,166 crores in March.

Central Bank raised its exposure significantly to Rs. 628 crores during the last six months from Rs. 162 crores till March. Advances against shares came down drastically to about Rs. 967 crores till September from Rs. 1,118 crores last fiscal.

Bank of India topped the list with an exposure of Rs. 326 crores, which is lower than Rs. 459 crores till March 2001. Bank of India was followed by Central Bank of India with exposure of Rs. 229 crores.

- PTI

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