Private sector lenders were leading the rally in banking space post the Union Budget 2016 on hopes that the Reserve Bank of India may go for 50 basis points rate cut in 2015-16 and higher retail credit offtake due to the Budget announcements on an additonal Rs 50,000 deduction on home loan interest. ICICI Bank was the biggest gainers in BSE Bankex and was trading 5.74 per cent up at Rs 200.90 (at 12.05 pm). It was followed by IndusInd Bank (up 3.75 per cent), Federal Bank (up 3.68 per cent), Axis Bank (up 3.29 per cent). Public secgtor banks, Punjab National Bank, Bank of Baroda and State Bank of India were also trading higher by 2.59 per cent, 2.05 per cent and 1.89 per cent, respectively. The benchmark index BSE Bankex was trading 2.58 per cent up at 16,222. UBS and HSBC have said that they expect RBI to announce cut in benchmark rates in the aftermath of Budget 2016-17. According to Bank of America Merrill Lynch, banks may cut deposit and lending rates from April by up to 50-75 basis points. Separately, the strong outlay proposed on road may manifest in some credit uptick in the second half of 2016-17 taking credit growth closer to 14 per cent. Centrum Broking in a research note said, \u201cThe Budget 2016 disappointed on PSU recapitaliastion of only Rs 25000 crore, strengthening of DRT and amendment to SARFAESI Act 2002 with respect to asset reconstruction company will enable faster resolution of asset quality-related problems in the longer run.\u201d Policy decisions like bankruptcy code, monetary policy committee and constitution of Bank Board Bureau will further strengthen the financial sector.