Banking stocks rallied at 11:05 IST on BSE on media reports that the Reserve Bank of India eased the pressure on banks by pruning the list of companies whose loans need to be provided for against the risk of default.
Among public sector banks, Punjab National Bank (up 5.93% at Rs 89.25), Bank of Baroda (up 4.89% at Rs 159.75), Canara Bank (up 4.31% at Rs 205.55), Union Bank of India (up 4.09% at Rs 132.30), State Bank of India (up 3.76% at Rs 194.35), Indian Bank (up 3.7% at Rs 101), Bank of India (up 2.43% at Rs 96.95), Syndicate Bank (up 1.53% at Rs 69.85) and IDBI Bank (up 0.69% at Rs 72.45) edged higher.
Among private sector banks, ICICI Bank (up 6.11% at Rs 252.70), Axis Bank (up 2.46% at Rs 469.30), Yes Bank (up 1.18% at Rs 892.15) and HDFC Bank (up 0.17% at Rs 1,098.45) edged higher. IndusInd Bank (down 0.54% at Rs 979.55) and Kotak Mahindra Bank (down 0.14% at Rs 685) edged lower.
The S&P BSE Bankex index had outperformed the market over the past one month till 20 April 2016, gaining 4.13% compared with the Sensex's 3.57% rise. The index had also outperformed the market in past one quarter, surging 9.88% as against Sensex's 7.41% rise.
The S&P BSE Bankex index was currently up 441.65 points or 2.38% at 19,029.74. It outperformed the S&P BSE Sensex which was up 129.86 points or 0.5% at 25,974.04.
According to reports, the Reserve Bank of India (RBI) yesterday, 20 April 2016, told banks that they don't have to provide in Q4 March 2016 for outstanding loans to 20 firms out of the 150 it had listed earlier. The immediate outcome of the latest decision will be better-than-expected results for the banks in Q4 March 2016, reports suggested.
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