Among private banks, YES Bank surged 5 per cent on the National Stock Exchange (NSE), followed by Axis Bank and RBL Bank (1.7 per cent each), Federal Bank (1.6 per cent), and IndusInd Bank (1.3 per cent). Besides, ICICI Bank, which gained only 0.6 per cent, hit a fresh 52-week high of Rs 538.9 apiece.
Among the public sector banks (PSBs) pack, UCO Bank surged 18.8 per cent on the NSE, Oriental Bank of Commerce gained 8 per cent, and Central Bank of India (5.6 per cent). Shares of Bank of India, Punjab National Bank (PNB), SBI, Canara Bank, and Allahabad Bank advanced up to 4 per cent.
Additionally, sentiment at D-Street was bolstered by the latest amendments approved by the Cabinet Committee of Economic Affairs (CCEA) with respect to the Insolvency and Bankruptcy Code (IBC). These amendments protect successful resolution applicants from criminal proceedings against offences committed by previous managements or promoters. Consequently, banking industry now expects the resolution proceeds from Essar Steel and Ruchi Soya to be received as early as next week.
Morevoer, the Cabinet also lowered the rating threshold for public sector banks to purchase high-rated pooled assets to BBB+ from “financially sound” nonbanking finance companies (NBFCs) and housing finance companies (HFCs) under the partial credit guarantee (PCG) scheme. Lowering the limit from AA will make more NBFCs and HFCs eligible for funds from banks.