Nifty Bank, Nifty Private Bank index hit record high

HDFC Bank hit a new high of Rs 1,608, while ICICI Bank touches fresh 52-week high of Rs 318 on NSE

Shares of private sector banks are in focus with Nifty Bank and Nifty Private Sector Bank indices hit their respective record highs after a strong run-up in ICICI Bank, HDFC Bank, YES Bank and IndusInd Bank.

HDFC Bank hit a new high of Rs 1,608, up 2.6%, while ICICI Bank touches fresh 52-week high of Rs 318, up 3.6% on the National Stock Exchange (NSE) at intra-day trade.

At 2:27 pm; the Nifty Private Bank index, the largest gainer among sectoral indices, was up 2.4% at 12,793, as compared to 1.16% gain in Nifty 50 index. Nifty Bank and Nifty PSU Bank index were up 2.3% and 1.6%, respectively.

The Nifty Private Bank index hit a new high of 12,797 in intra-day trade, surpasses its previous high of 12,698 on May 11, 2017. Nifty Bank index hit a record high of 23,069, surpasses its previous high of 22,978 touched on May 17, 2017 in intra-day deal.

ICICI Bank has rallied 16% in past three weeks post January-March (Q4FY17) results as most of the analysts believe that the worst in terms of asset quality slippages is behind.

“Overall pool of stressed loans is showing signs of stability, and bulk of non-performing assets (NPA) recognition is happening from watch list and OSRL,” said analyst at Motilal Oswal Securities in results update.

“We believe that H2FY2018E can see more meaningful improvements in asset quality, which will be important for the gradual re-rating of the stock (currently trading at 1.8x FY2019E ABV),” Sharekhan said in result update.

Meanwhile, the 14 private sector banks had reported 19% year-on-year (y-o-y) growth in their aggregate net profit in March 2017 quarter (Q4FY17). These banks had posted negative growth of 14.8% y-o-y in Q4FY16.

“It does appear that the banking system, barring a handful of public sector banks (PSBs), should be able to recover henceforth if the March NPA and provisions are indicative of the state of things to come. The next two quarters will provide a clue,” CARE Ratings said on Q4 banking performance.

Individual banks which are stressed need special attention and the RBI is already in the process of identifying such banks under the Prompt Corrective Action policy being pursued. It is likely that the demand for credit will increase in the coming year with growth picking up, added report.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
DHANLAXMI BANK	35.95	33.65	6.8
ORIENTAL BANK	151.20	144.40	4.7
VIJAYA BANK	78.05	75.55	3.3
UNION BANK (I)	165.80	160.60	3.2
ICICI BANK	315.90	306.80	3.0
YES BANK	1465.95	1424.05	2.9
INDUSIND BANK	1455.05	1414.30	2.9
J & K BANK	79.25	77.15	2.7
RBL BANK	538.95	524.90	2.7
SYNDICATE BANK	77.70	75.70	2.6
FEDERAL BANK	110.05	107.30	2.6
UNITED BANK (I)	20.20	19.70	2.5
I O B	25.80	25.20	2.4
HDFC BANK	1604.85	1569.40	2.3
CORPORATION BANK	50.30	49.25	2.1
BANK OF INDIA	144.15	141.25	2.1
PUN. & SIND BANK	53.55	52.50	2.0
SOUTH IND.BANK	25.75	25.25	2.0
BANK OF BARODA	179.15	175.70	2.0
ANDHRA BANK	59.60	58.50	1.9