Shares of public sector banks (PSB) continued their upward march on Monday and are trading as much as 4% higher on the bourses after Reserve Bank of India relaxed the Basel III norms for public lenders, by a year.
Punjab National Bank, Bank of India, Bank of Baroda, Central Bank of India and Canara Bank are up 3-4% each, while State Bank of India, Indian Overseas Bank, Allahabad Bank, Union Bank of India and Syndicate Bank are up 2% each on the National Stock Exchange (NSE).
The NSE PSU bank index (CNX PSU Bank) index, the largest gainer among sectoral indices, is up 2.6% at 2,795 levels, compared to almost 1% rise each in the benchmark Nifty and Bank Nifty at 0925 hours.
CNX PSU Bank index has rallied 29% during the month of March, while the benchmark CNX Nifty has gained 7%, and Bank Nifty rose 19% so far during the current month.
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, RBI said in a notification.
The move to extend Basel III implementation deadline is positive for Banks (especially PSU banks) as it provides a leeway for Banks already grappled with asset quality stress, says analyst at Angel Broking in a client note.
Meanwhile, the RBI may maintain status quo in the upcoming annual monetary policy on April 1 as retail inflation, especially in food items, is yet to show definite signs of moderation, the PTI report suggests.
Among the individual stocks Andhra Bank has rallied 4% to Rs 66 on the NSE. Bank of India up 3.5% at Rs 236, followed by PNB and BOB are up 3% each at Rs 774 and Rs 751 respectively.
Punjab National Bank, Bank of India, Bank of Baroda, Central Bank of India and Canara Bank are up 3-4% each, while State Bank of India, Indian Overseas Bank, Allahabad Bank, Union Bank of India and Syndicate Bank are up 2% each on the National Stock Exchange (NSE).
The NSE PSU bank index (CNX PSU Bank) index, the largest gainer among sectoral indices, is up 2.6% at 2,795 levels, compared to almost 1% rise each in the benchmark Nifty and Bank Nifty at 0925 hours.
CNX PSU Bank index has rallied 29% during the month of March, while the benchmark CNX Nifty has gained 7%, and Bank Nifty rose 19% so far during the current month.
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, RBI said in a notification.
The move to extend Basel III implementation deadline is positive for Banks (especially PSU banks) as it provides a leeway for Banks already grappled with asset quality stress, says analyst at Angel Broking in a client note.
Meanwhile, the RBI may maintain status quo in the upcoming annual monetary policy on April 1 as retail inflation, especially in food items, is yet to show definite signs of moderation, the PTI report suggests.
Among the individual stocks Andhra Bank has rallied 4% to Rs 66 on the NSE. Bank of India up 3.5% at Rs 236, followed by PNB and BOB are up 3% each at Rs 774 and Rs 751 respectively.
