Bank Nifty records modest gains as stocks Kotak Bank, SBI, Axis Bank, PNB lift the index

Banking stocks recorded favourable gains on Thursday with major state-owned banks driving the sector. Private banks were in focus after the Reserve Bank of India (RBI) governor Shaktikanta Das met with the MDs and CEOs of the banks. Notably, the sectoral index has witnessed higher volatility ahead of the May F&O expiry.

At around 2.29 PM, Bank Nifty was trading at 34,835.65 up by 151.45 points or 0.44%. The index has touched an intraday high and low of 35,006.70 and 34,529.70 respectively.

PNB was the top gainer surging nearly 6%, while AU Small Finance Bank and Kotak Bank followed with an upside of 1.9% and 1.6%, respectively.

Heavyweights Axis Bank and SBI climbed by more than 1.1% each.

Nearly, 1% surge each was recorded in stocks like Federal Bank, Bandhan Bank and RBL Bank.

However, index heavyweight HDFC Bank was the top underperformer tumbling marginally. ICICI Bank also saw selling bias.

IDFC First Bank and IndusInd Bank was broadly on a subdued level, however, in the red.

In the meeting, the RBI governor advised the banks to ensure continuity in the provision of various financial services including credit facilities to individuals and businesses in the face of challenges brought on by the pandemic. He also urged them to continue focussing on efforts to further strengthen their balance sheets proactively.

Last week, RBI officials had also met public sector banks. The governor acknowledged the important role being played by PSBs in extending various banking facilities including credit facilities to individuals and businesses while tackling the challenges brought on by the pandemic. He also urged the banks to continue focussing on steps to enhance the resilience of their balance sheets.

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( With inputs from indiainfoline)