Bank Stocks Rose: Investors earn huge profits in bank shares, today 12%

Rally in Bank Stocks: In today’s trade, the Nifty Bank index closed up by 990 points or 4.17 percent. Today all 12 stocks of the index were strong. Talking about different stocks, the investors have got 12 per cent returns in a day. Both PSU and private indices were up 5 per cent and 4.5 per cent. Due to the strong performance of bank shares, the market has also seen strong closing. The Nifty crossed 11650. After all, what is the reason behind this rise in bank shares.

Performance of shares

IndusInd Bank 12.08 percent
Federal Bank 8.11 percent
Axis Bank 7.87%
Bank of Baroda 5.95 percent
PNB 5.67 percent
IDFC Bank 5.64 Percent
SBI 4.52 percent
RBL Bank 4.44 Percent
ICICI Bank 4.40 per cent
Kotak Bank 3.45 percent
Bandhan Bank 2.86 percent
HDFC Bank 0.48%

Banking sector strong and stable

Bank shares have seen good gains for the second consecutive day today. In fact, a statement by RBI Governor Shaktikanta Das has improved sentiments on bank shares. He had said that the banking sector has remained strong and stable. In the bank sector
And hinting at the reform, he said that the bank may face challenges, but it is important that how they face the challenges.

Merger in the right direction

Shaktikanta Das also said on the merger of public sector banks, that the merger of banks is a step in the right direction. Das said that the size of banks is important, but efficiency is more important.

Rating of banks

Global and domestic houses are looking positive about banks. The rating of banks is being given better or stable. Global financial firm UBS has upgraded the ratings of IndusInd Bank and SBI. After which their shares have gained momentum. UBS has increased the rating of shares of IndusInd Bank and SBI from Buy to Sell. Brokerage house CLSA expects a 50 per cent upgrade to SBI. Apart from this, experts have advised to invest in different bank shares.

financial performance

Even after the lockdown, the financial performance of some banks has been better than expected. State Bank of India (SBI) has performed better in the June quarter even after Covid-19. The bank’s net profit in the June quarter increased by 81 percent to Rs 4,189.34 crore. The bank’s gross NPA and net NPA have also decreased. HDFC Bank’s profit grew 20 per cent year-on-year to Rs 6659 crore. While asset quality has also been stable. ICICI Bank’s profit has increased 36 per cent year-on-year to Rs 2,599 crore. The bank has managed to improve its asset quality.

Signs of improvement in economy

Recently, it was indicated by the government that the economy is now on the path of recovery. In such a situation there has been a stir over bank shares. It has been such a trend that whenever the economy is on the path of improving from below, bank stocks are seen to be the fastest. Demand increases, due to which credit growth gives banks good support.