Banking stocks up by 5 to 11%

Public sector banking stocks are back with a vengeance ahead of the credit policy announcement on Tuesday. These stocks bounced back up to 1...

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Public sector banking stocks are back with a vengeance ahead of the credit policy announcement on Tuesday. These stocks bounced back up to 11 per cent on Monday. Among the gainers, PSU majors Oriental Bank of Commerce, Bank of Baroda, Punjab National Bank and Corporation Bank spurted 5-11 per cent in just one day.

According to a broking source, the rate cut would result in trading profits for banks on the bond street. Broking sources add that the cut in bank rate may also boost credit off-take at least in the retail segment. The market is expecting a 25 basis point cut in bank rate and a similar cut in cash reserve ratio (CRR), according to a Delhi-based NSE broker.

Banking stocks rebounded on Monday. Oriental Bank of Commerce shot up 10.91 per cent on April 28 to close at Rs 82.85 as against its previous close of Rs 74.7. The stock plunged about 9 per cent between April 16-25. It was followed by Bank of Baroda which surged 6.74 per cent on Monday to close at Rs 86.35 as against its previous day’s close of Rs 80.9. As on Friday, the stock plummeted by 15 per cent since April 4, the day when it closed at Rs 95.15.

PNB also jumped 5.79 per cent to close the day at Rs 117.8 as against Rs 11.35. This stock gained ground since it was closed at Rs 100.85 on April 23. PNB gained 16.81 since April 23. Corporation Bank also surged 4.46 per cent during the day to close at Rs 146.45 as against Rs 140.2 on April 25. Since April 8, the stock had dropped 6.19 per cent at close on Friday. The other major gainers during the day included Bank of India (3.68 per cent to close at Rs 40.85) and Canara Bank (3.42 per cent, Rs 87.80).