Banking shares are in focus in early morning deals, after the Reserve Bank of India (RBI) decided to allow banks to transfer SLR (statutory liquidity ratio) securities to HTM (Held to Maturity) category from available for sale (AFS) / held for trading (HFT) categories up to the limit of 24.5% as a one-time measure.
Such transfer of securities from AFS/HFT category to HTM category is to be made at the lower of the book value or market value (calculated as of July 15, 2013).
The move is positive for public sector banks like Canara Bank, Punjab National Bank, Bank of Baroda, Bank of India, Corporation Bank and many others, analysts say.
In addition, RBI has also allowed the banks to spread over the MTM (mark to market) losses on the remaining AFS/HFT book over the next three quarters equally.
Analyst at Angel Broking believe these measures are only sentimentally positive for the banks, other basic fundamental negatives remains largely unchanged except for the RBI intention to not let long term yields go too high.
Among the individual stocks, YES Bank, IndusInd Bank, Oriental Bank of Commerce, Canara Bank, Union Bank of India, Punjab National Bank, Dena Bank, Axis Bank and Bank of India has rallied more than 7% each on the Bombay Stock Exchange (BSE).
The BSE banking share index Bankex, has gained over 5% or 546 points as compared to 1% or 187 points rise in benchmark S&P BSE Sensex at 0920 hours.
Such transfer of securities from AFS/HFT category to HTM category is to be made at the lower of the book value or market value (calculated as of July 15, 2013).
The move is positive for public sector banks like Canara Bank, Punjab National Bank, Bank of Baroda, Bank of India, Corporation Bank and many others, analysts say.
In addition, RBI has also allowed the banks to spread over the MTM (mark to market) losses on the remaining AFS/HFT book over the next three quarters equally.
Analyst at Angel Broking believe these measures are only sentimentally positive for the banks, other basic fundamental negatives remains largely unchanged except for the RBI intention to not let long term yields go too high.
Among the individual stocks, YES Bank, IndusInd Bank, Oriental Bank of Commerce, Canara Bank, Union Bank of India, Punjab National Bank, Dena Bank, Axis Bank and Bank of India has rallied more than 7% each on the Bombay Stock Exchange (BSE).
The BSE banking share index Bankex, has gained over 5% or 546 points as compared to 1% or 187 points rise in benchmark S&P BSE Sensex at 0920 hours.