As a relief to the public sector banking industry, the ordinance for change in Banking Regulation Act for NPAs which got clearance from the President of India, Pranab Mukherjee today, brought cheers to the overall Public Sector Banking Industry. According to reports details of the ordinance per se NPA will be made public shortly.
Shares of the PSU Banks have been trading higher for three consecutive days and after the clearance for the better NPA management, SBI stock hit a fresh 52-week high.
As per a leading Business dailies report, "The new framework for NPAs will allow state-owned banks to conduct open auctions of NPAs, wherein cash-rich public sector companies will be encouraged to buy such assets in their sector".
Nifty PSU Bank Index traded at 3902 in early trading session today emerging as a top gainer among sectoral indices with gains extending to the tunes of 2.2%. The index has been seen to trade at its highest level since early 2015 reaching new highs after two years.
Majority of the shares in the public sector banking pack including State Bank of India, Bank of India, Canara Bank, PNB among other seventeen banks are seen trading at their 52-week highs.SBI was trading at a price of Rs. 301.15 at 12.45 pm today.