Latest News | Bank Stocks Gain After RBI Announcement

New Delhi, May 5 (PTI) Banking stocks on Wednesday gained after the RBI unveiled a slew of measures to support the economy facing headwinds due to the second wave of the COVID-19 pandemic.

Kotak Mahindra Bank jumped 2.42 per cent, Axis Bank 2.41 per cent, Indusind Bank 2.33 per cent, ICICI Bank 1.88 per cent, City Union Bank 1.65 per cent, RBL Bank 1.35 per cent, State Bank of India 1.07 per cent, HDFC Bank 1 per cent and Federal Bank 0.88 per cent on the BSE.

Tracking gains in these stocks, the BSE Bank index gained 1.67 per cent.

The 30-share BSE index also gained 424.04 points or 0.88 per cent to close at 48,677.55.

The RBI allowed certain individual and small borrowers more time to repay debt and allowed banks to give priority loans to vaccine makers, hospitals, and COVID-related health infrastructure as it announced support measures to cushion the pandemic's blow to the economy.

RBI Governor Shaktikanta Das also said the central bank will buy Rs 35,000 crore of bonds under the Government Securities Acquisition Programme (G-SAP) -- India's version of quantitative easing -- on May 20. RBI also allowed banks to dip into their floating provisions to set aside money for bad loans.

"Notably, the announcement of liquidity support by the RBI governor to tackle the challenges coming from the second wave of COVID-19 crisis aided financials to rebound," Binod Modi, Head Strategy at Reliance Securities.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)