Bank stocks today rose by up to 2 per cent as NPA resolution efforts are gaining traction after the Reserve Bank asked lenders to initiate bankruptcy proceedings against large defaulters. Shares of Axis Bank rose by 1.94 per cent, HDFC Bank gained 1.40 per cent, ICICI Bank went up by 1.30 per cent, SBI (0.93 per cent), Indusind Bank (0.73 per cent) and Kotak Mahindra Bank (0.46 per cent) on BSE. Among others, Canara Bank rose by 1.08 per cent, Bank of India (0.33 per cent), Union Bank of India (0.23 per cent). The BSE bank index rose by 0.96 per cent to close at 26,844.85.
“RBI’s insistence that banks start bankruptcy proceedings which will improve bank’s asset quality and strengthen balance sheet, led the index climb 1 per cent,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd. “With bad loan resolution efforts gaining traction, banking stocks led stocks higher,” said Anand James, Chief Market Strategist, Geojit Financial Services Ltd. The BSE Sensex surged 255.17 points to close at 31,311.57.