L&T Finance, Bajaj Finance rally post Banking Bill cleared

Banking and financials' stocks gained after the Banking Bill cleared by Lok Sabha yesterday. Experts believe the new Banking Amendment Bill would pave the way for RBI to issue new bank license.

The Banking Bill also seeks to raise the voting rights of investors in private sector banks to 26 percent, from 10 percent. It also allows RBI to supersede boards of private sector banks and increase the cap on voting rights of private investors in PSBs to 10 per cent, from 1 per cent. Aditya Birla Money Equity Research said enhanced voting rights would be an additional incentive for foreign investors to acquire or raise stakes in Indian banks.
The Finance Minister P Chidambaram expressed the commitment of the government to infuse Rs 15,000 crore into public sector banks in the current financial year and retain their basic character. (With inputs from PTI) Bill looks positive for L&T Housing Finance, M&M Financial, Aditya Birla Nuvo, Shriram Capital, Federal bank, South Indian Bank, ING Vysya, Indusind Bank, Karnataka Bank, etc, Aditya Birla Money added. Also Read - This step is in direction of further reforms: L&T Financial Meanwhile, major public sector banks like SBI, PNB, Bank of Baroda, Canara Bank, Allahabad Bank, Bank of India, IOB and United Bank climbed 0.75-1 percent. Private sector lenders like City Union Bank, DCB, Dhanlaxmi Bank, Karnataka Bank, Karur Vysya Bank, Lakshmi Vilas Bank and South Indian Bank rallied 2-4.5 percent. State Bank of Travancore, State Bank of Mysore and State Bank of Bikaner & Jaipur gained 4-5 percent on hopes of merger with country's largest lender State Bank of India (Stock prices at 9:40 hours IST).

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