Shares of seventeen public sector banks soared after the Finance Minister a slew of measures for the banking sector.
Finance Minister Nirmala Sitharaman after market hours on Friday, 23 August 2019, announced a slew of measures to revive economy to arrest the ongoing economic slowdown in the country.
For the banking sector, FM announced upfront release of Rs 70,000 crore, additional lending and liquidity to the tune of about Rs 5 lakh crore by providing upfront capital to public sector banks. This will benefit Corporates, Retail borrowers, Micro, Small and Medium Enterprises (MSME), small traders, etc.
The Minister added that the banks will pass on rate cuts through MCLR (Marginal Cost of Funds based Lending Rate) reduction to benefit all borrowers. EMIs for housing loans, vehicle and other retail loans will reduce by directly linking repo rate to interest rates. Working capital loans for industry will also become cheaper.
To reduce harassment and bring in greater efficiency, public sector banks will ensure mandated return of loan documents within 15 days of loan closure. This will benefit borrowers who have mortgaged assets.
For ease of customer, banks will provide online tracking of loan applications by customers of retail, Micro, Small and Medium Enterprises (MSME), housing, vehicle, working capital, limit enhancements, renewals etc. This would increase transparency, reduce harassment, and improve turn around time for customers.
Central Bank of India (up 8.68%), Allahabad Bank (up 8.01%), Corporation Bank (up 6.86%), UCO Bank (up 6.64%), Bank of Maharashtra (up 5.98%), Andhra Bank (up 5.13%), Syndicate Bank (up 4.87%), Bank of India (up 4.74%), Punjab & Sind Bank (up 4.44%), United Bank of India (up 4.27%), IDBI Bank (up 4.05%), Punjab National Bank (up 4.01%), Union Bank of India (up 3.79%), Canara Bank (up 3.76%), State Bank of India (up 3.73%), Indian Bank (up 3.72%) and Bank of Baroda (up 3.42%) advanced.
Meanwhile, the S&P BSE Sensex was up 143 points or 0.39% to 36843.89.
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