Public sector banks edged higher at 13:17 IST on BSE, with the stocks extending Thursday's gains triggered by reports that provisioning for non-performing asset will be lower than anticipated in Q4 March 2016.
Among public sector banks, Canara Bank (up 3.53% at Rs 212.75), Bank of Baroda (up 3.26% at Rs 163.05), State Bank of India (up 3.22% at Rs 200.45), Punjab National Bank (up 2.77% at Rs 91), Union Bank of India (up 2.27% at Rs 134.90), Syndicate Bank (up 1.92% at Rs 71.60), Bank of India (up 1.44% at Rs 98.40) and IDBI Bank (up 0.76% at Rs 72.85) edged higher.
Among private sector banks, HDFC Bank (up 0.55% at Rs 1,097), Axis Bank (up 0.52% at Rs 470.05) and Yes Bank (up 0.21% at Rs 883.75) edged higher. ICICI Bank (down 0.22% at Rs 252.50) and Kotak Mahindra Bank (down 0.87% at Rs 679.90) edged lower.
The S&P BSE Bankex index had outperformed the market over the past one month till 21 April 2016, gaining 4.38% compared with Sensex's 2.35% rise. The index had also outperformed the market in past one quarter, advancing 10.55% as against Sensex's 8% rise.
The BSE Bankex index was currently up 127.48 points or 0.67% at 19,078.94. It outperformed the S&P BSE Sensex which was up 14.66 points or 0.06% at 25,895.04.
As per media reports, the Reserve Bank of India (RBI) has pruned the list of companies whose loans need to be provided for against the risk of default. RBI has informed banks individually that they don't have to provide in the March quarter for outstanding loans to 20 firms, including Jaiprakash Associates and Coastal Energen, out of the 150 it had listed in December. The decision was prompted partly by the steps taken by companies to cut debt, according to reports. Banks were forced to make substantial provisions in the December quarter following an asset quality review (AQR) ordered by the central bank. Due to this, a number of banks reported losses in Q3 December 2015.
IndusInd Bank rose 1.46% at Rs 985.85 on strong Q4 March 2016 results. The bank's net interest margin rose 26 basis points on year-on-year basis to 3.94% in Q4 March 2016. The private sector bank said that growth in total deposits stood at industry beating 25% in Q4 March 2016. Growth in current and savings accounts (CASA) deposits stood at 29% in Q4 March 2016. The CASA ratio edged up to 35.2% as on 31 March 2016 from 35% as on 31 December 2015. The growth in the bank's loan book stood at industry beating 29% in Q4 March 2016. Shares of IndusInd Bank had lost 1.35% to settle at Rs 971.65 yesterday, 21 April 2016, as the fourth quarter results showed increase in the bank's sticky loans.
IndusInd Bank's net profit rose 25.25% to Rs 620.35 crore on 23.38% growth in total income to Rs 4044.49 crore in Q4 March 2016 over Q4 March 2015. The bank announced the results during trading hours yesterday, 21 April 2016.
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