 "Bank Nifty hits record high")
Banking shares back into focus with the National Stock Exchange (NSE) Bank Nifty hits a fresh record high during intra-day trade today.
At 0946 hours, Bank Nifty was up 0.94% or 176 points at 18,923.60, surpassing its previous high of 18,875.45 touched during intra-day trade on December 5, 2014. The benchmark CNX Nifty was up 0.46% or 39 points at 8,362.70.
State Bank of India (SBI), Bank of Baroda, Federal Bank, Punjab National Bank, Axis Bank and Bank of India were up 1-2%, while IndusInd Bank, Yes Bank, Canara Bank, Kotak Mahindra Bank and ICICI Bank up 1% each.
The Reserve Bank of India (RBI) tightened the screws on bank customers who default on loans despite having the ability to repay their debts, creating a new category of borrowers classified as “non-cooperative” and asking banks to set aside higher provisions for incremental lending to such companies and their founders.
“Banks/financial institutions will be required to make higher provisioning as applicable to substandard assets in respect of new loans sanctioned to such borrowers as also new loans sanctioned to any other company that has on its board any of the wholetime directors/promoters of a non-cooperative borrowing company,” said the RBI, the banking regulator, on Monday.
Meanwhile, Bank of Baroda, the largest gainer among the pack, was up 2% at Rs 1,079 after the state-owned lender has fixed January 23, 2015 as the record date for stock split.
“January 23, 2015 has been fixed as the Record Date for determining the shareholders of the bank, who are entitled to receive the equity shares of the bank upon the sub division/ reduction in the face value of one existing equity share of Rs 10 each fully paid up into five equity shares of Rs 2 each fully paid up,” Bank of Baroda said in BSE filing.
At 0946 hours, Bank Nifty was up 0.94% or 176 points at 18,923.60, surpassing its previous high of 18,875.45 touched during intra-day trade on December 5, 2014. The benchmark CNX Nifty was up 0.46% or 39 points at 8,362.70.
State Bank of India (SBI), Bank of Baroda, Federal Bank, Punjab National Bank, Axis Bank and Bank of India were up 1-2%, while IndusInd Bank, Yes Bank, Canara Bank, Kotak Mahindra Bank and ICICI Bank up 1% each.
The Reserve Bank of India (RBI) tightened the screws on bank customers who default on loans despite having the ability to repay their debts, creating a new category of borrowers classified as “non-cooperative” and asking banks to set aside higher provisions for incremental lending to such companies and their founders.
“Banks/financial institutions will be required to make higher provisioning as applicable to substandard assets in respect of new loans sanctioned to such borrowers as also new loans sanctioned to any other company that has on its board any of the wholetime directors/promoters of a non-cooperative borrowing company,” said the RBI, the banking regulator, on Monday.
Meanwhile, Bank of Baroda, the largest gainer among the pack, was up 2% at Rs 1,079 after the state-owned lender has fixed January 23, 2015 as the record date for stock split.
“January 23, 2015 has been fixed as the Record Date for determining the shareholders of the bank, who are entitled to receive the equity shares of the bank upon the sub division/ reduction in the face value of one existing equity share of Rs 10 each fully paid up into five equity shares of Rs 2 each fully paid up,” Bank of Baroda said in BSE filing.