Banking Sector boost after new RBI Governor’s charge

Appointment Shaktikanta Das as the new Governor of the Reserve Bank of India (RBI) has been a boost to banking sector shares.

The public sector and private sector indices, which represent Nifty banking stocks in NSE, rose substantially on Wednesday.  Nifty bank index rose 1.32 percent, Private bank index surged 1.47 percent and PSU bank index went up 1.79 percent through the mid-noon hours of trade on the NSE

Yes Bank shares rose 4.78 percent, Federal Bank up 4.12 percent, IDFC Bank at 3.85 percent and State Bank of India were up 1 percent.

South Indian bank rose 0.80 percent, Kotak Mahindra Bank shares rose by 1.67 percent, HDFC Bank up 0.75 percent, ICICI Bank up 1.43 percent, RBL and IndusInd Bank shares rose by nearly 1 percent each.

Also, 11 public sector bank shares that have been banks under the prompt corrective action (PCA) framework have been risen today.   Bank of India, Union Bank, Vijaya Bank, Punjab National Bank, Allahabad Bank, Oriental Bank of Commerce Bank, United Bank and Corporation Bank shares rallied 4 to 5 percent in range.

On the other hand, non-banking shares have also responded positively to Shaktikanta Das appointment. Among the sectoral indices, Housing Finance, HDFC and Bajaj Finance gained over 2% each.