Banking shares rally, Karnataka Bank 8%

Union Bank of India, Canara Bank, Vijaya Bank, Syndicate Bank, Allahabad Bank and OBC are up by 3-4% on the BSE.

Banking shares are in limelight on the bourses on reports that the sector has seen a pick-up in demand for credit since the beginning of the festive season in October.

“Bank loans have grown 4.3% as of November 16 since the beginning of the fiscal year in April, compared with a growth of 1.6% in the first six months of 2012-13, RBI data showed,” the Reuters report suggests. Credit grew 5.9% in the same period in the previous year.

Bank credit grew by 16.85% while the deposits up by 13.42% year-on-year in the fortnight ended November 16.

Among individual stocks, Karnataka Bank has rallied 8% to Rs 176, followed by South Indian Bank and Development Credit Bank are up 5% each at Rs 24.85 and Rs 46.90 respectively.

Union Bank of India, Canara Bank, Vijaya Bank, Syndicate Bank, Allahabad Bank and Oriental Bank of Commerce are up by 3-4%, while SBI and ICICI Bank are up 2% each on the BSE.