Banking index gains
The BSE banking index closed 2.2 percent higher on Friday despite analysts’ warning that mid-cap lenders could see muted net profit growth in the July-September quarter.
Some of the major gainers on the Bankex were Karnataka Bank (up 8.3 percent), Oriental Bank (up 6.8 percent), Union Bank (up 6.5 percent), SBI (up 5.3 percent), ICICI Bank (up 2.4 percent) and Andhra Bank (up 3.7 percent).
Earlier in the week, UCO Bank, HDFC, HDFC Bank and Axis Bank declared their results.
Shares in HDFC Bank were down 0.3 percent today, while that of Axis Bank ended 0.1 percent lower.
Economic downturn has crimped banks’ loan growth that slowed from around 27 percent in December 2008 to 12.6 percent in September 2009, even as deposit growth remained around 20 percent, data from the Reserve Bank showed.
Do you think it is a good time to invest in this sector which might see muted profits this season?