The apex court, however, maintained its order asking banks to not identify accounts as non-performing assets (NPAs) during the moratorium period. In another latest development, the RBI has extended marginal standing facility (MSF) deadline for banks to avail funds.
At around 12.41 PM, Nifty Bank was performing at 21,388.95 down 276.55 points or 1.28%. The index has also touched the day's low of 21,296.90.
On Nifty Bank, the underperformers list was led by Bank of Baroda trading at Rs41.60 per piece down 4.04%, followed by PNB at Rs29 per piece lower by 3.81% and IndusInd Bank at Rs534.20 per piece below 3.77%. Meanwhile, Bandhan Bank and Axis Bank were trading at Rs273.35 per piece and Rs428.15 per piece tumbling by 2.53% each.
Other stocks like Federal Bank (Rs49.30 per piece), SBI (Rs184.10 per piece), IDFC First Bank (Rs30 per piece), ICICI Bank (Rs358.55 per piece), RBL Bank (Rs171.65 per piece) and Kotak Mahindra Bank (Rs1,264.10 per piece) plunging in the range of 1% to 2.5%.
However, private lender HDFC Bank remained the sole gainer on the index, trading at Rs1,056.15 per piece up 0.18%.
On Monday, a bench led by Justice Ashok Bhushan heard pleas seeking for interest waiver of accruing interest during the moratorium period which took place starting March 2020. The pleas also included an extension in the moratorium period.
The SC order where banks are asked not to declare accounts as NPA for two months remains in effect. The next hearing is now adjourned on October 05, 2020.
On the same day, RBI said, to provide comfort to banks on their liquidity requirements as also to enable to continue to meet LCR requirements, it has been decided to continue with the marginal standing facility (MSF) relaxation for a further period of six months, i.e., up to March 31, 2021.
Earlier on March 27, 2020, banks were allowed to avail funds under the MSF by dipping into the Statutory Liquidity Ratio (SLR) by up to an additional one per cent of net demand and time liabilities (NDTL), i.e., cumulatively up to 3% of NDTL.