Banking Shares Outdo Sensex 2.5 Times In 15 Days

Banks stocks have outperformed the markets during the last 15 days. The rise in banking sector scrips has been 2.5 times that of the Bombay Stock Exchange (BSE) Sensex in the period.

The trigger came from the news that Bank of Brussels Lambert of the Dutch financial group ING intends to acquire management control of Vysya Bank. BBL has 20 per cent stake in Vysya Bank.

The market value of 29 listed banks surged 20.6 per cent since February 1, 2002, while the Sensex rose by 8.4 per cent. The upward movement saw most banks stocks rising to their 52-week highs.

Bank of India, Federal Bank, Jammu & Kashmir Bank, SBI of Bikaner & Jaipur, SBI of Travancore and Vysya Bank touched their 52-week highs. Several other banks, including UTI Bank, Vijaya Bank, Oriental Bank of Commerce, Indian Overseas Bank, IDBI Bank and Centurion Bank, are nearing their 52-week highs.

Interestingly, the banks stocks have appreciated by over 70 per cent from their 52-lows recorded on September 21, 2001. Bank of India bounced back from a low of Rs 10.15 on April 3, 2001, to a 52-week of high of Rs 25 today. The stock has gained 145 per cent over its low of Rs 10.15 and 45.3 per cent during the last 15 days.

Vysya Bank gained 115 per cent at Rs 190 over its 52-week low level of Rs 88 recorded on July 2, 2001. Similarly, J & K Bank shot up by 112 per cent and Federal Bank by 109 per cent over their 52-week lows recorded in September 2001.

State Bank of India too reported an appreciable gain of 77.5 per cent since September 21. The bank