Bank stocks take wings on status quo

Banking stocks were in demand, after the Reserve Bank of India (RBI) announced no change in the banking rates in the credit policy.

The bank's stocks gained 1.54 per cent on an average, increasing the investor's wealth by Rs 3,120 crore. The market capitalisation of the banking sector today increased from Rs 202,391 crore on October 24 to Rs 205,511 crore today.

The public Sector banks advanced with State Bank of India gained 2.44 per cent to Rs 884.80 from the previous day's closing of Rs 863.75. The largest private sector bank, ICICI Bank posted modest gain of 1.16 per cent to close at Rs 503.70 on the Bombay Stock Exchange.

United Western Bank was up by five per cent today from 57.05 on October 24 to Rs 59.90 today. Syndicate bank gained 4.37 per cent to Rs 80.20 while Syndicate Bank advanced 4.37 per cent to Rs 80.20.

Oriental Bank of Commerce rose 4.16 per cent to Rs 250.10, Dena Bank rose 4.03 to Rs 33.85, Punjab National Bank rose 3.46 per cent to Rs 400.90, Bank of Baroda gained 3.05 per cent to Rs 223.25, Bank of India rose 2.64 to Rs 107.05 and Andhra Bank advanced 2.23 per cent to Rs 94.05.

Only five stocks lost ground today with J & K Bank decline 4.5 per cent to Rs 439.75, Ing Vysya Bank fell 2.85 per cent to RS 166.85, Indusind Bank down 1.77 per cent to RS 52.85, HDFC bank down 0.84 per cent to Rs 630.10 and State Bank of Mysore fell 0.56 per cent to Rs 3757.

Today, the RBI raised the reverse repurchase rate to 5.25 per cent from 5 per cent and the repurchase rate from 6 per cent to 6.25 per cent. It kept the bank rate unchanged at 6 per cent. The apex bank raised its growth forecast for the financial year 2005/06 to 7.0-7.5 per cent from around 7 per cent forecast in April 2005.