ICICI Bank up on securitisation ruling

DALAL STREET SPIKES

ICICI Bank was in limelight gaining 0.86 per cent to Rs 292.25 after the Supreme Court upheld the constitutional validity of the Securitisation Act empowering the financial institutions to attach and sell assets of defaulting borrowers.

SC upheld the act while giving its ruling on the ICICI Bank-Mardia Chemicals case.

The ICICI Bank stock rallied from a low of Rs 286 to an intra-day high of Rs 296 before closing at above levels. The counter witnessed volumes of over 7.87 lakh shares at the BSE.

According to an institutional dealer, more clarity has emerged now after the SC ruling. The Securitisation Act, which was enacted more than an year ago, has been among one of the biggest triggers for the surge in shares of public sector banks (PSU Banks) over the last one year. The act paves way for speedy recovery of banks' sticky loans.

As a result, PSU stocks such as Indian Overseas Bank (up 6.71 per cent to Rs 59.60), State Bank of Bikaner (up 4.58 per cent to Rs 1,947.95), Union Bank of India (up 4.54 per cent to Rs 61.05), Syndicate Bank (up 4.15 per cent to Rs 43.95) and Bank of India (up 3.21 per cent to Rs 67.55) ended with decent gains.

SBI, however, ended marginally lower at Rs 623.05 on profit booking at higher levels.