ICICI Bank spikes up by 10 per cent

ICICI Bank fuelled an upsurge in the benchmark index on Monday as the leading private bank posted better-than-expected results for Q2FY19.

The stock closed at Rs. 349.15 per share, up by 10.82 per cent, lifting the benchmark index BSE Sensex to 34,067.40, which was up by 718.09 points or 2.15 per cent. On the BSE Sensex, ICICI Bank contributed closed to 30 per cent of the index gains.

The market today focused on banking sector, both private banks and PSU banks has there was buzz in the media that government is pressurizing the banking regulator, Reserve Bank of India (RBI) to ease PCA norms. RBI has placed 11 state-owned banks are under the PCA framework, which restricts them normal lending and further expansion of their network.

However, finance ministry officials have indicated that the government just wants to just alignment the PCA norms with the best in the world.

Also on Friday, RBI said that in order to inject liquidity into the market it will buy US$ 5.45 billion of government bonds via open-market operations (OMO) in November.