Buoyant GDP numbers lift bank counters

Banking stocks staged a smart rally today on expectations that credit offtake may improve as the economy speeds up the growth path. Public sector bank stocks such as State Bank of India (SBI), Andhra Bank, Corporation Bank, Indian Overseas Bank, Punjab National Bank, UCO Bank and Vijaya Bank hit their all-time highs on the Bombay Stock Exchange (BSE).

As a result, the BSE's index of banking stocks, Bankex, also hit a lifetime high of 2874.26 before settling down at 2866.96. The Bankex gained 67.92 points over its previous close of 2799.04 on Wednesday.

In the last one month, the index has gained 19 per cent compared with 15 per cent gains reported by the Sensex. The SBI scrip touched a lifetime high of Rs 566.80 in intra-day trading on the BSE before closing at Rs 565.10. The stock gained 5 per cent over its previous day's close of Rs 538.50.

The Corporation Bank scrip hit a high of Rs 257.50 before closing at Rs 254.15, gaining 2 per cent over Wednesday's close of Rs 248.95.

Similarly, the Andhra Bank scrip hit Rs 56.50, Indian Overseas Bank Rs 36.25, Uco Bank Rs 23.35 and Vijaya Bank Rs 46.95, all of which are all time highs on the BSE.

Punjab National Bank scaled a new high Rs 246.60 before closing at Rs 240.95, marginal lower to its previous day's close of Rs 241.35.

Both public and private banks witnessed sustained buying today, with market dealers saying that the stocks will be the first to benefit from accelerated GDP growth.

UCO Bank was up by 13.05 per cent to Rs 22.95 (Rs 20.30), Vijaya Bank by 11.20 per cent to Rs 46.65 (Rs 41.95), Syndicate Bank by 6.40 per cent to Rs 40.75( Rs 38.30), IOB by 6.01 per cent to Rs 36.15 (Rs 34.10), IDBI Bank by 5.69 per cent to Rs 52.05 (Rs 49.25), Allahabad Bank by 5.62 per cent to Rs 27.25(Rs 25.80) and Bank of Punjab by 5.23 per cent to Rs 32.20 (Rs 30.60).