State-run banks surge after RBI extends Basel III deadline

Shares of state run bank today surged in the range of three per cent to nearly five per cent after the Reserve Bank extended deadline for meeting Basel III norms to March 2019.
RBI yesterday extended deadline for banks to implement global capital norms, Basel III, by a year to March 2019 on concerns of potential stresses on the asset quality and profitability of the banks.
Reacting to the development, shares of State Bank of India jumped 4.64 per cent to an intra-day high of Rs 1,925 on the BSE.
Similarly, the scrip of Bank of Baroda rose 3.36 per cent to a high of Rs 717.90 and Punjab National Bank edged 4.10 per cent higher to Rs 733.65 on the BSE.

As per the RBI notification, the transitional period for full implementation of Basel III Capital Regulations in India is extended up to March 31, 2019, instead of as on March 31, 2018.
"This will also align full implementation of Basel III in India closer to the internationally agreed date of January 1, 2019," RBI said.
Brokers said the jump in the counter was largely on the back of yesterday's announcement by the RBI, which is likely to ease concerns of potential stress on the asset quality and profitability of the banks.