Mumbai: Bank stocks today advanced as much as 8% in the morning trade on the Bombay Stock Exchange (BSE), buoyed by the Reserve Bank of India’s (RBI) move to infuse additional liquidity into the economy by reducing key rates.
The index of banking stocks Bankex today opened at 5,312.07 points and rallied further to an intra-day high of 5,414.45, up 8.04% from the previous close. It was later quoting at 5,349.65 points, a high of 6.75%.
Led by the largest private sector lender,ICICI Bank, which surged 10.43%, the shares of all major lenders soared in the range 7-10%.
ICICI Bank touched an intra-day high of Rs441. It was later trading at Rs432, up 8.18%, while HDFC Bank soared 7.26% at Rs1,098.
Axis Bank gained 8%, and Yes Bank 16%, on the BSE.
The country’s largest lender, State Bank of India, surged 9.51% to touch the day’s high of Rs1,215. It was later trading at Rs1,195, up 7.71%. Over 1.27 lakh shares changed hands on the BSE.
Punjab National Bank’s stock jumped nearly 8% to Rs452 in the early trade and was later quoting at Rs445.30. Other major PSU gainers were Bank of India (8.41%) and Federal Bank (12%)
Meanwhile, finance minister P Chidambaram supported the RBI’s latest policy package to infuse additional liquidity as a signal for a cut in interest rates. He is scheduled to meet PSU bankers tomorrow, where he would ask them to consider lowering lending rates.