BSE Bankex hits record high on hopes of reforms

Seventeen bank stocks gained by 0.23% to 2.27% at 12:45 IST on BSE after a two day Bankers Retreat organized by Ministry of Finance begins today, 2 January 2014 to prepare a blue print of reform action plan for banking sector.

Meanwhile, the S&P BSE Sensex was up 379.39 points or 1.38% at 27,886.93.

Among PSU bank stocks, State Bank of India (SBI) (up 1.04%), Canara Bank (up 0.81%), Union Bank of India (up 0.33%), Bank of India (up 0.95%), Punjab National Bank (up 0.34%) Syndicate Bank (up 1.05%), Indian Overseas Bank (up 0.78%), Andhra Bank (up 0.93%), Oriental Bank of Commerce (up 0.24%), and Dena Bank (up 1.34%), gained.

Among private sector banks, ICICI Bank (up 2.27%), IndusInd Bank (up 0.43%), Yes Bank (up 1.77%), HDFC Bank (up 1.7%), Federal Bank (up 0.23%), Kotak Mahindra Bank (up 0.98%) and Axis Bank (up 2.07%), gained.

The BSE Bankex hit a high of 27,874.64, also a record high for the index.

The BSE Bankex had outperformed the market over the past one month till 1 January 2015, rising 1.18% compared with Sensex's 3.68% fall. The index had also outperformed the market in past one quarter, gaining 22.43% as against Sensex's 3.54% rise.

The Prime Minister Narendra Modi will interact with bankers during two day Bankers Retreat called 'Gyan Sangam' in Pune today, 2 January 2014 and tomorrow, 3 January 2015, to prepare a blue print of reform action plan for banking sector. The objectives of this retreat are to create a platform for formal and informal discussions around the issues which are important for banking sector reform, the finance ministry had said on 24 December 2014. At the session's end tomorrow, 3 January 2015, a reforms blueprint for phased implementation will be presented to Prime Minister Narendra Modi.

The meeting's agenda includes universal financial inclusion, leveraging technology, improving risk management, recovery and asset quality, talent management in PSU banks, and consolidation & restructuring of PSU banks for better efficiency, governance and capital efficiency.

Besides the Prime Minister Narendra Modi and the Finance Minister Arun Jaitley, the Reserve Bank of India Governor Raghuram Rajan and top Finance Ministry officials are attending the retreat.

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