Private banks gain on hopes of attracting more foreign investments

Seven private sector banks rose by 0.71% to 5.03% at 15:25 IST on BSE after the Finance Minister Arun Jaitley in Union Budget 2015-16 has done away with the distinction between different types of foreign investments.

Meanwhile, the BSE Sensex was up 110.12 points, or 0.38%, to 29,471.62.

Among private banks, HDFC Bank (up 1.58%), ICICI Bank (up 0.71%), IndusInd Bank (up 2.54%), Yes Bank (up 2.02%), Federal Bank (up 4.92%), Kotak Mahindra Bank (up 0.79%) and Axis Bank (up 5.03%), declined.

Finance Minister Arun Jaitley in Union Budget 2015-16 presented on 28 February 2015, announced that to further simplify the procedures for Indian Companies to attract foreign investments, it is decided to do away with the distinction between different types of foreign investments, especially between foreign portfolio investments and foreign direct investments, and replace them with composite caps. Banks with foreign investment cap of below 74% would be able to attract more foreign investment.

Jaitley Introduced a Gold Monetisation Scheme, which will replace both the present Gold Deposit and Gold metal Loan Schemes. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewelers to obtain loans in their metal account. Banks/other dealers would also be able to monetize this gold. Finance Minister has proposed to introduce soon several measures that will incentivize credit or debit card transactions, and disincentivise cash transactions.

Powered by Capital Market - Live News