State-run banks extend rally on new deadline for Basel III

Tags: Companies
State-run banks extend recent gains after RBI on Thursday extended the deadline for banks to implement Basel III capital rules by a year to March 31, 2019, due to concerns from the industry on potential stress to asset quality.

State Bank of India gains 2.8 percent, Bank of Baroda 2.7 percent and Punjab National Bank 3.3 percent.

"Additional capital requirements for FY15-FY16 for public sector banks would almost halve after RBI's move," an analyst tracking the sector at a foreign brokerage said.

Banks have surged this month - with the NSE bank sub-index up 18 percent on hopes of a recovery in the domestic economy, central bank's potentially easing monetary policy and broker upgrades.

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