Banks have surged with the NSE bank sub-index, which is up by 18%
Mumbai: State-run banks extend recent gains, after RBI on Thursday extended the deadline for banks to implement Basel III capital rules by a year to March 31, 2019, due to concerns from the industry on potential stress to asset quality.
State Bank of India gains 2.8 per cent, Bank of Baroda 2.7 per cent and Punjab National Bank gains 3.3 per cent.
"Additional capital requirements for FY15-FY16 for public sector banks would almost halve after RBI's move," stated an analyst tracking the sector at a foreign brokerage .
Central Bank is also potentially easing monetary policy and broker upgrades. Banks have surged with the NSE bank sub-index up 18 per cent on hopes of a recovery in the domestic economy.
( Source : reuters )
Next Story
