The main opposition BJP, along with the Left and the Trinanamool Congress, were up in arms in the Lok Sabha against one of the provisions of the bank bill, which allows banks to trade in commodities derivatives.
On Monday, Parliament was stalled because of the banking bill, but, that did not stop banking shares from rallying sharply with Lakshmi Vilas Bank surging 19.81% along with State Bank of India subsidiaries and private sector names like Karnataka Bank.
If the Banking Laws Amendment Bills is not passed in parliament on Tuesday, it could lead to sharp reaction in banking stocks.
Two other crucial financial bills that face the test in parliament are the ones related to allowing FDI in the pension sector and increasing FDI limit in the insurance sector.
But these are unlikely to sail through easily. "All bills, including those on privatisation of pension funds and FDI in insurance, should not be brought forward in the current session of Parliament. We will more or less oppose these bills because they will affect the common people," TMC parliamentary party leader Sudip Bandyopadhyay told PTI.
To compound the government's worries is the fact that the Rajya Sabha remains disrupted over the promotion of quotas for scheduled castes and tribes.
Bahujan Samaj Party supremo Mayawati has given the government three days for passing SC/ST quota promotion bill passed, while Mulayam Singh Yadav's Samajwadi Party (SP) threatened to disrupt parliament until the proposal is withdrawn.
The government is caught between the SP and the BSP crossfire on one side and a vociferous opposition including the BJP, Left and the Trinamool Congress on the other. It looks difficult in the current scenario for key financial bills to sail through in both the houses.