Bank stocks end higher; Bank of Baroda jumps nearly 6 pc

New Delhi, Jun 9 (PTI) Bank stocks were in the limelight on Tuesday, with Bank of Baroda surging nearly 6 per cent, adding significantly to the equity markets’ rebound, where the benchmark indices ended higher.

Shares of Bank of Baroda jumped 5.65 per cent, Canara Bank climbed 4.29 per cent, Punjab National Bank went up by 3.69 per cent, Federal Bank rallied 3.40 per cent, and IndusInd Bank advanced 3.24 per cent on the BSE.

Similarly, Union Bank of India was up 3.09 per cent, State Bank of India (2.13 per cent), AU Small Finance Bank (2.05 per cent), ICICI Bank (2.03 per cent), Axis Bank (1.93 per cent), Yes Bank (1.61 per cent) and Kotak Mahindra Bank (1.22 per cent).

The BSE Bankex index climbed 2.18 per cent to 62,264.81.

Among other PSU banks,

Bank of Maharashtra surged 5.54 per cent, Indian Bank was up 3.90 per cent, UCO Bank (3.88 per cent) and Indian Overseas Bank (2.08 per cent).

The BSE PSU Bank index ended 3.83 per cent higher at 4,800.37.

The 30-share BSE Sensex climbed 394.50 points, or 0.54 per cent, to settle at 73,918.76. The 50-share NSE Nifty ended 119.10 points, or 0.52 per cent, higher at 23,242.10.

“The standout performer was the PSU banking space, which significantly outperformed the broader market. A major catalyst came from the RBI’s recent initiatives aimed at improving banking system liquidity and reducing funding costs.

“These measures are expected to benefit large public sector lenders, leading to renewed buying interest across names such as Bank of Baroda, Canara Bank and Bank of India,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

The Reserve Bank on Monday introduced a US dollar-rupee forex swap facility for fresh FCNR (B) deposits mobilised by banks for a minimum tenor of three years and a maximum of five years to attract foreign capital.

Foreign Currency Non-Resident (Bank) deposits are foreign currency term deposits maintained by non-resident Indians (NRIs).

Last week, the RBI announced a series of measures to attract overseas funds and ease external financing conditions. PTI SUM HVA