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Banking stocks edge up on RBI action on defaulters

LiveMint logoLiveMint 14-06-2017 Devidutta Tripathi

Mumbai: Indian bank shares edged higher on Wednesday after the Reserve Bank of India (RBI) said it had identified 12 of the largest loan defaulters and will order lenders to start bankruptcy proceedings against them, without disclosing any account names.

Top lender State Bank of India (SBI) was trading up 0.2% by 9.26am, having risen as much as 0.7%, Punjab National Bank was 0.4% up, while Sensex was trading higher by 0.08% to 31,128 points.

While taking defaulters to bankruptcy proceedings will speed up resolution of bad loans, it may also require the capital-starved state-run banking sector to make higher provisioning, analysts said. Reuters

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