Mumbai: Banking stocks on Monday surged nearly 7% in early morning trade, driven by measures announced by the government and hefty rate cuts by the Reserve Bank of India on Friday, to boost the slowing economy.
Mirroring the gain in the scrips, the BSE banking index surged 3.48% at 5,871.90 points. It was later quoting at 5,826.95 points, up 2.69%.
Meanwhile, scrips of public sector banks were trading in the positive zone amid reports that the government has directed the PSU banks to lend in the next three months Rs56,000 crore, over and above their existing disbursement target.
Led by the country’s largest lender, SBI, which advanced 2.85% to touch a high of Rs1,368, shares of other lenders gained in the range of 2-6% on the Bombay Stock Exchange.
SBI was later trading at Rs1,360, up 2.26%, and over two lakh shares changed hands on the BSE.
Punjab National Bank gained 1.05% at Rs537.50, Indian Overseas Bank rose 2.46% at Rs76.90 and Bank of India jumped 2.06% at Rs302.20 on the BSE.
Among other state-run lenders that gained were Allahabad Bank (3.39%), Bank of Baroda (2.60%) and Union Bank (1.70%).
Besides, private sector banking major ICICI Bank surged 8.23% to a high of Rs510. It was later trading at Rs489.55, up 3.89%. Meanwhile, HDFC Bank surged 2.38% to a high of Rs1,040. It was later quoted at Rs1,033, up 1.69% and Yes Bank gained 5.65% at Rs86.
Other private bankers that gained on the bourse were Axis Bank (3.18%), IDBI Bank (1.11%) and Kotak Mahindra Bank (1.54%).