Fourteen bank shares rose by 0.11% to 5.37% at 9:44 IST on BSE after after the Reserve Bank of India extended the timeline for full implementation of the Basel III capital regulations to 31 March 2019.
Union Bank of India (up 5.37%), Canara Bank (up 4.46%), Bank of India (up 3.61%), Punjab National Bank (up 3.58%), Bank of Baroda (up 3.16%), State Bank of India (up 2.69%), Yes Bank (up 2.66%), Federal Bank (up 2.56%), IDBI Bank (up 2.35%), IndusInd Bank (up 1.72%), Axis Bank (up 1.45%), Kotak Mahindra Bank (up 1.04%), ICICI Bank (up 0.20%) and HDFC Bank (up 0.11%), edged higher.
The S&P BSE Bankex was up 0.98% at 14,554.93. It outperformed the Sensex, which was up 0.45% at 22,314.36.
The S&P BSE Bankex had outperformed the market over the past one month till 27 March 2014, rising 17.66% compared with the Sensex's 5.85% rise. The index had also outperformed the market in past one quarter, rising 10.25% as against Sensex's 4.82% rise.
The Reserve Bank of India (RBI), in a notification on Thursday, 27 March 2014, said that the implementation of Basel III capital regulations may necessitate some lead time for banks to raise capital within the internationally agreed timeline for full implementation of the Basel III capital regulations. Accordingly, the transitional period for full implementation of Basel III capital regulations in India is extended up to 31 March 2019, instead of as on 31 March 2018.
The central bank also said the extension will align full implementation of Basel III in India closer to the internationally agreed date of 1 January 2019.
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Basel III is a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector.
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