Banking stocks gain on RBI statement on recapitalisation

Last Updated: Thu, Dec 07, 2017 12:41 hrs
Bank (Image Courtesy: Reuters)

Shares of state-run lenders rise on hopes that the government will soon announce details of more than $32 billion recapitalisation plan first outlined in October.

Reserve Bank of India (RBI) Governor Urjit Patel says working with government on recapitalisation details; says to be announced in coming days and recap bonds will be "front-loaded" for stronger banks.

Patel also says it will be a recap and reform package to ensure mistakes of past are not repeated.

RBI statement offers more clarity and transparency around the recapitalisation plan, analyst at domestic brokerage says.

Lower fees on debit card transactions announced on Wednesday also seen boosting digital transactions, helping banks reduce costs.

Nifty PSU Bank index rises as much as 1.63 pct; State Bank of India, Punjab National Bank gain over 1.5 pct each.

Nifty PSU bank index, up 26 pct in 2017, looks set for third session of gains in eight.

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