Bank stocks: Gains for some, losses for others
It was a mixed bag of trading for bank stocks Monday with some settling with gains while others ending with losses after online portal Cobrapost alleged that 23 public and private sector banks and insurance firms were running a money laundering racket by blatantly violating laws.
Mumbai: It was a mixed bag of trading for bank stocks Monday with some settling with gains while others ending with losses after online portal Cobrapost alleged that 23 public and private sector banks and insurance firms were running a money laundering racket by blatantly violating laws.
Shares of State Bank of India settled 0.39 percent up, while Indian Overseas Bank rose by 0.48 percent, Oriental Bank of Commerce (0.49 percent), Dena Bank (0.88 percent), Allahabad Bank (0.83 percent), Dhanlaxmi Bank (0.44 percent), Federal Bank (0.17 percent) and DCB Bank (0.54 percent).
In contrast, shares of Punjab National Bank fell by 1.04 percent, IDBI Bank (1.57 percent), Bank of Baroda (0.18 percent), Canara Bank (0.77 percent), Yes Bank (0.24 percent), Indian Bank (0.09 percent), Corporation Bank (0.20 percent) and Central Bank of India (0.29 percent).
Those named in the expose include SBI, LIC, Punjab National Bank (PNB), Bank of Baroda, Canara Bank, Reliance Life, Tata AIA, Yes Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, Dhanlaxmi Bank, Federal Bank, DCB Bank and Birla Sun Life.
"In its continuing undercover operation, spanning several months, Cobrapost finds dozens and dozens of major public sector banks, and many more private banks, across the country are blatantly involved in money laundering, as are major insurers. In all, 23 banks and insurance companies have been exposed," the portal said in a release.
Cobrapost alleged that the financial sector entities offered to open bank accounts and lockers for customers without following Know Your Customer (KYC) norms, convert their black money into white and obtain fictitious PAN cards.
In the broader market, the BSE benchmark Sensex ended at 19,673.64, up 98 points.