Credit Hopes Drive Up Bank Shares

Banking stocks were in the limelight on the Bombay Stock Exchange today. A rally in State Bank of India provided the springboard for other public and private bank stocks.

An analyst with a local brokerage said, "The banking sector looks bullish as it is expected that credit offtake will go up in 2002-03 amid the ongoing economic recovery."

There are others who expect the government to initiate divestment in public banks. These hopes have been spurred by the government's fast moving divestment agenda in public undertakings, analysts added.

The top gainers among the public banks today were Syndicate Bank, up 17.87 per cent over its previous close to Rs 17.05, Vijaya Bank moved up 10.04 per cent to Rs 13.70, Indian Overseas Bank (IOB) rose 11.6 per cent to Rs 13.95, Dena Bank was up 6 per cent to Rs 12.35, Oriental Bank of Commerce (OBC) up 3.6 per cent to Rs 47.20.

 

Banking shares have been doing very well over the last few trading sessions after a number of banks, both public and private, came out with improved Q4 and FY02 results on the back of a surge in treasury incomes.

Among private banks, Centurion Bank moved up 8.99 per cent to Rs 10.30, UTI Bank was up 5.39 per cent to Rs 40.05, while Global Trust Bank was up 3.58 per cent to Rs 21.70.

Dena Bank was among the top second line bank stocks to post a 37 percent increase from Rs 7.50 on May 21 to Rs 11.85 recorded as of June 5.