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Nifty PSU Bank index up for fourth straight day

SBI, PNB, Allahabad Bank, Bank of India, Union Bank of India, Canara Bank, Indian Bank and Bank of Baroda were up in the range of 5% to 11% on the NSE in past one week.

SI Reporter  |  Mumbai 

SBI hikes rates on bulk deposits by 100 bps

Shares of public sector banks continued trade higher with the index gaining for the fourth trading sessions after the Reserve Bank of India (RBI) announced its first bi-monthly monetary policy for the financial year 2018-19 (FY19) on April 4, 2018.

At 02:57 pm; index was up 1% at 3,074, rallied 7.8% in past four trading days as compared to 2.8% rise in the Nifty 50 index.

Punjab National Bank (PNB), Allahabad Bank, Bank of India, Union Bank of India, Canara Bank, Indian Bank and Bank of Baroda were up in the range of 5% to 11% on the National Stock Exchange (NSE) in past one week.

Today, State Bank of India (SBI) has moved higher by 1.5% to Rs 265 in noon deal trade after a huge block deal executed on the counter. Around 1.85 million shares have changed hands state owned bank counter at 02:39 pm, the data shows. So far, total 4.16 million shares have changed hands against an average 1.78 million shares were traded in past two weeks on the

The said the Monetary Policy Committee (MPC) maintained its neutral monetary policy stance with a focus on maintaining medium-term inflation at 4%.


For fiscal 2019, the MPC revised down its inflation outlook supported by recent sharp moderation in food prices and the statistical downside that will accrue in mid-2018 as the impact of the Seventh Pay Commission payments fades. The inflation forecast for fiscal 2019 is revised down to ~4.7% average, from ~5% estimated earlier. Yet, given upside pressures, the MPC will stay vigilant on the evolving inflation scenario. The forecast for gross domestic product (GDP) has been kept unchanged at 7.4% for fiscal 2019.

CRISIL Research expects banking credit to grow 8-9% and 10-12% in fiscals 2018 and 2019, respectively, supported by improved economic growth and domestic demand. While deposit growth will likely reach 6.5-7% and 7-7.5%, respectively, credit growth will be marginally higher, leading to a higher credit-deposit (CD) ratio.

Earlier in current month, the allowed banks to spread their mark-to-mark (MTM) losses on bonds over 4 quarters comes in as a bit of respite for banks.

The index has surged 13% from its recent low of 2,716 recorded on March 23, against 4% rise in the Nifty 50 index.


First Published: Tue, April 10 2018. 15:19 IST
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