Banking shares have recorded their highest single day gain in last four years today, after the Reserve Bank of India (RBI) announced a slew of measures to benefit retail investors and revive the Indian economy.
The BSE banking index Bankex and NSE Bank Nifty rallied over 9% each and recorded their respective sharpest single day gain since 2009.
Bankex closed 9.3% or 938 points higher at 11,015 points, while Bank Nifty ended the day by 9.5% higher at 9,682 today. The benchmark indices S&P BSE Sensex and CNX Nifty have gained 2.2% and 2.7% respectively.
Earlier in May 18, 2009, the banking indices had rallied 19% after the Congress led UPA came back into power.
State Bank of India, YES Bank, ICICI Bank, Axis Bank, Federal Bank, Oriental Bank of Commerce and ING Vysya Bank has gained more than 10% each.
Kotak Mahindra Bank, IndusInd Bank, Dena Bank, Bank of Baroda, HDFC Bank and Canara Bank are among few which have surged between 7-9%.
Dr. Raghuram Rajan, the new governor of the RBI, made several positive announcements on Wednesday, his first day in office. One of the announcement was to allow banks to swap their USD liabilities against FCNR(B) (foreign currency non-resident) deposits at 3.5% per annum for three years (market rates: 6-8%).
This, along with a few other measures, could attract $ 10 billion of forex inflows in next three months and could be a material near-term positive for the Indian rupee (INR), according to an analyst at Barclays Bank PLC.
A meaningful improvement in INR sentiment would raise the likelihood of a rollback in September-October of some of the RBI’s recent liquidity-tightening measures, he adds.
RBI chief also said that the central bank will shortly issue the necessary circular to completely free bank branching for domestic scheduled commercial banks in every part of the country and also said that there is need to reduce the requirement for banks to invest in government securities in a calibrated way so as to ensure the flow of credit to the productive sectors of the economy.
The reform initiatives suggested by the RBI governor, particularly that of financial inclusion, facilitating investment flows, promoting financial savings, addressing the depreciation of the rupee and rising inflation are timely and reflect an innovative approach to tackle the headwinds facing the economy and revive investor confidence, said Mr Kris Gopalakrishnan, President, CII.
The BSE banking index Bankex and NSE Bank Nifty rallied over 9% each and recorded their respective sharpest single day gain since 2009.
Bankex closed 9.3% or 938 points higher at 11,015 points, while Bank Nifty ended the day by 9.5% higher at 9,682 today. The benchmark indices S&P BSE Sensex and CNX Nifty have gained 2.2% and 2.7% respectively.
Earlier in May 18, 2009, the banking indices had rallied 19% after the Congress led UPA came back into power.
State Bank of India, YES Bank, ICICI Bank, Axis Bank, Federal Bank, Oriental Bank of Commerce and ING Vysya Bank has gained more than 10% each.
Kotak Mahindra Bank, IndusInd Bank, Dena Bank, Bank of Baroda, HDFC Bank and Canara Bank are among few which have surged between 7-9%.
Dr. Raghuram Rajan, the new governor of the RBI, made several positive announcements on Wednesday, his first day in office. One of the announcement was to allow banks to swap their USD liabilities against FCNR(B) (foreign currency non-resident) deposits at 3.5% per annum for three years (market rates: 6-8%).
This, along with a few other measures, could attract $ 10 billion of forex inflows in next three months and could be a material near-term positive for the Indian rupee (INR), according to an analyst at Barclays Bank PLC.
A meaningful improvement in INR sentiment would raise the likelihood of a rollback in September-October of some of the RBI’s recent liquidity-tightening measures, he adds.
RBI chief also said that the central bank will shortly issue the necessary circular to completely free bank branching for domestic scheduled commercial banks in every part of the country and also said that there is need to reduce the requirement for banks to invest in government securities in a calibrated way so as to ensure the flow of credit to the productive sectors of the economy.
The reform initiatives suggested by the RBI governor, particularly that of financial inclusion, facilitating investment flows, promoting financial savings, addressing the depreciation of the rupee and rising inflation are timely and reflect an innovative approach to tackle the headwinds facing the economy and revive investor confidence, said Mr Kris Gopalakrishnan, President, CII.
| PERFORMANCE OF BANKING SHARES | |||
| Name | 4-Sep-13 | 5-Sep-13 | %Chg |
| Yes Bank | 236.40 | 287.35 | 21.55 |
| Axis Bank | 802.05 | 927.45 | 15.63 |
| Federal Bank | 244.00 | 274.20 | 12.38 |
| Oriental Bank | 129.65 | 143.94 | 11.02 |
| ING Vysya Bank | 426.25 | 470.80 | 10.45 |
| SBI | 1491.05 | 1636.25 | 9.74 |
| ICICI Bank | 817.90 | 893.15 | 9.20 |
| Kotak Mahindra Bank | 608.65 | 662.70 | 8.88 |
| IndusInd Bank | 367.65 | 397.85 | 8.21 |
| Dena Bank | 44.05 | 47.65 | 8.17 |
| Bank of Baroda | 465.25 | 502.65 | 8.04 |
| HDFC Bank | 566.10 | 608.75 | 7.53 |
| City Union Bank | 38.04 | 40.90 | 7.52 |
| Canara Bank | 196.15 | 210.75 | 7.44 |
| Union Bank of India | 103.05 | 110.65 | 7.38 |
| Karnataka Bank | 79.80 | 85.65 | 7.33 |
| Punjab National Bank | 413.00 | 442.85 | 7.23 |
| Allahabad Bank | 66.65 | 71.45 | 7.20 |
| Andhra Bank | 48.05 | 51.45 | 7.08 |
| Syndicate Bank | 65.40 | 69.95 | 6.96 |
| Development Credit Bank | 41.20 | 44.05 | 6.92 |
| UCO Bank | 50.55 | 54.00 | 6.82 |
| J & K Bank | 1050.55 | 1121.25 | 6.73 |
| Indian Overseas Bank | 39.85 | 42.40 | 6.40 |
| Bank of India | 136.69 | 145.10 | 6.15 |
| United Bank Of India | 28.65 | 30.40 | 6.11 |
| Vijaya Bank | 34.95 | 37.04 | 5.98 |
| State Bank Of Travan | 414.25 | 438.30 | 5.81 |
| IDBI Bank | 53.90 | 56.90 | 5.57 |
| Dhanlaxmi Bank | 30.10 | 31.55 | 4.82 |
| Central Bank | 50.45 | 52.80 | 4.66 |
| Indian Bank | 62.05 | 64.84 | 4.50 |
| Corporation Bank | 240.45 | 250.65 | 4.24 |
| South Indian Bank | 19.30 | 20.10 | 4.15 |
| Punjab & Sind Bank | 38.10 | 39.50 | 3.67 |
| State Bank of Bikaner & Jaipur | 322.95 | 333.10 | 3.14 |
| Lakshmi Vilas Bank | 61.85 | 63.70 | 2.99 |
| Karur Vysya Bank | 300.89 | 309.75 | 2.94 |
| State Bank of Mysore | 474.55 | 486.45 | 2.51 |
| Bank of Maharashtra | 37.04 | 37.95 | 2.46 |
| Share price on BSE in Rs | |||
| Data complied by BS Research | |||