5 stocks in the banking sector to watch out for on September 22

After the Fed hiked the interest rate by 75 bps to rein the unbridled inflation, the market jitters returned. The S&P BSE Bankex is quoting down by 1.31%, at 46,502.09 while the frontline index the Sensex is trading at 59118.85 with a loss of 0.6%.

Let us see which stocks in the bankex sector investors should keep an eye on.

State Bank of India (SBI), the country’s largest lender, raised Rs 4,000 crore Basel III compliant Tier 2 bonds on September 21, 2022, at a coupon rate of 7.57%. On witnessing an overwhelming response to the issue which was oversubscribed by about 5 times against the base issue size of Rs 2,000 crore, the lender has decided to accept Rs 4,000 crore. The bonds are issued at a coupon rate of 7.57% payable annually for a tenor of 15 years with a call option after 10 years and on anniversary dates thereafter. This represents a spread of 14 bps over 10-year Gsec. At 11.25 am the shares of SBI quoting at Rs 566, down by 0.67%.

Punjab National Bank (PNB) has informed in a press release that the Bank has issued and allotted Basel Ill Compliant Additional Tier-I Bonds at a coupon of 8.30% p.a. aggregating to Rs 658 crore on a private placement basis. The bonds issued are unsecured, subordinated, non-convertible, fully paid-up, taxable, Basel Ill Compliant Additional Tier I Bonds of Rs 1 crore each which will qualify as Tier I capital. At 11.30 am the shares of PNB were quoting at Rs 40.30, up 0.37% or Rs 0.15.

IDBI Bank Ltd informed the exchanges that it has completed the sale transaction of its entire stake of 20,00,00,000 equity shares in Ageas Federal Life Insurance Company Limited (AFLI) to Ageas Insurance International NV (Ageas), pursuant to the receipt of the requisite regulatory approvals. At 11.25 am the shares of IDBI Bank were quoting at Rs 43.65, down by 1.36% or Rs 0.60.

HDFC Bank, India's largest private sector lender on September 21, 2022, signed a multi-year data and technology agreement with Refinitiv, a London Stock Exchange Group business for digital transformation with the intent to reach more customers and cut costs. HDFC Bank will get comprehensive access to Refinitiv's data and products under the agreement, enabling cost savings across several bank divisions. At 11.30 am, the shares of HDFC Bank were quoting at Rs 1495.60 down 1.52% or Rs 23.15 per share. 

The Defence Ministry on September 21, 2022, signed a memorandum of understanding with Bank of Baroda and HDFC Bank, to onboard them as Service Centres under the System for Pension Administration (Raksha) (SPARSH) initiative, across more than 14,000 branches throughout India. The MoU will onboard more than 7,900 branches of Bank of Baroda as Service Centres to provide last-mile connectivity to pensioners. In the morning session, the shares of Bank of Baroda are trading at Rs 136.80 a loss of 3.18% over its previous close.