Financials rebound; Bajaj Finance, RBL Bank gain over 10% from day's low

The Supreme Court, during the hearing, indicated that it was not considering a complete waiver of interest but was only concerned that postponement of interest shouldn't accrue further interest on it.

Financial sector stocks moved higher by up to 6 per cent in late noon trade on Friday, bouncing back 13 per cent from day’s low on the BSE on Friday, after the Supreme Court gave three days to Finance Ministry, Reserve Bank of India (RBI) to decide on moratorium period interest.

According to an IANS report, the top court, during the hearing, indicated that it was not considering a complete waiver of interest, but was only concerned that postponement of interest shouldn't accrue further interest on it.

The Supreme Court on Friday asked Solicitor General Tushar Mehta to convene a meeting of the Finance Ministry and RBI officials over the weekend to decide whether interest incurred on EMIs during the moratorium period can be charged by banks. A bench comprising Justices Ashok Bhushan, Sanjay Kishan Kaul and M.R. Shah queried Mehta as the court was concerned since the Centre has deferred loan for three months, the IANS report said.

Bajaj Finance, RBL Bank, Cholamandalam Investment and Finance Company, Shriram Transport Finance, Mahindra & Mahindra Financial Services, PNB Housing Finance and Indian Overseas Bank bounced back over 10 per cent from their respective day’s low on the BSE.

At 02:53 pm; the S&P BSE Finance index was up 1.04 per cent at 4,742 points, as compared to 0.65 per cent rise in the S&P BSE Sensex. The S&P BSE Finance index recovered 5.7 per cent from its intra-day low of 4,485 it hit before the Supreme Court decision.

COMPANY	DAY'S LOW(RS)	DAY'S HIGH(RS)	RISE(%)
RBL BANK	147.25	167.20	13.41
CHOLAMAN.INV.&FN	140.00	159.10	13.11
SHRIRAM TRANS.	606.55	681.30	11.60
I O B	9.10	10.31	11.54
BAJAJ FINANCE	2199.00	2468.80	11.41
M & M FIN. SERV.	147.10	163.95	10.81
PNB HOUSING	200.00	221.00	10.50
BANDHAN BANK	248.00	274.10	10.36
I D F C	16.61	18.60	9.39
EQUITAS HOLDINGS	44.65	49.00	9.29
UJJIVAN FIN.SER.	185.00	203.60	9.19
IDFC FIRST BANK	23.00	25.25	9.13
CANARA BANK	93.60	102.10	8.76
INDIABULLS HOUS.	141.00	154.15	8.65
MAH. SCOOTERS	2191.10	2389.45	8.61
REC LTD	97.00	105.45	8.61
MANAPPURAM FIN.	134.20	146.70	8.61
J & K BANK	14.20	15.76	8.52
INDUSIND BANK	483.80	527.00	8.19
FEDERAL BANK	44.40	48.00	8.11
BAJAJ FINSERV	4900.00	5336.40	7.81
KARNATAKA BANK	37.65	40.85	7.70
BANK OF MAHA	9.89	10.64	7.18
BANK OF BARODA	42.00	45.00	7.02