Bank shares surge on RBI move to trim company list for provisioning

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New Delhi | April 21, 2016 12:08 PM

Banking majors such as Punjab National Bank, ICICI Bank, State Bank of India were trading higher by 6.23 per cent, 6.05 per cent and 4.06 per cent, respectively.

banking stocks, icici bank, sbi, pnb, indusind bankBanking majors such as Punjab National Bank, ICICI Bank, State Bank of India were trading higher by 6.23 per cent, 6.05 per cent and 4.06 per cent, respectively. (Express Photo)

Investors are banking on banks stocks on Thursday on reports that the Reserve Bank of India (RBI) has trimmed list of companies whose loans need to be provided for against the risk of default. Cheering the news, the 10-share BSE Bankex rallied over 2 per cent intraday.

Bankex has the highest weightage in the benchmark BSE Sensex which was trading 140 points up at 25,983.94 in the morning trade (at 11.45 am). Banking majors such as Punjab National Bank, ICICI Bank, State Bank of India were trading higher by 6.23 per cent, 6.05 per cent and 4.06 per cent, respectively.

Bank of Baroda and Federal Bank were up by 4.86 per cent and 4.66 per cent. HDFC Bank was trading 0.18 per cent up at Rs 1,098.55.

On the other hand, IndusInd was the only banking stock was trading in red ahead of its Q4 results. Shares of IndusInd Bank were trading 0.20 per cent down at Rs 982.95.

(With inputs from Reuters)

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