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Banking index drops

October 21, 2009

The BSE banking index dropped 1.2 percent on Wednesday in a broader market which ended flat.

The benchmark 30-share SenseMARKETS-SOUTHASIA/STOCKSx has more than doubled from the lows in early March, registering a rise of more than 78 percent with foreign funds infusing nearly $14 billion in Indian equities.

The BSE banking index on the other hand has risen nearly 90 percent in 2009.

Private lender ICICI Bank, which has a weightage of over 8 percent in the Sensex, dropped 1.6 percent to 928 rupees. The scrip has more than doubled since the start of this year.

The other Bankex stocks that declined were Bank of Baroda (down 4.4 percent), SBI (down 3.2 percent), HDFC Bank (down 1.6 percent) and Union Bank (down 1.2 percent).

Yes Bank today said July-Sep net profit had jumped 75.6 percent from the previous year. The stock ended 3.8 percent down at 244 rupees. The bank plans to raise $150-250 million via equity by March 2010 to meet expansion targets, a senior official said.

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