India’s bank stock prices after showing downtrends for the past four months, now shows an upward trend in September. The upward movement of the Indian banking stock prices is mainly because of the value buying coupled with announcements made by the RBI chief for some new reform measures. Some of these measures were directed towards providing support to the rupee and liberalising the banking sector. If new measures are successfully employed then banks would profit with higher limits for overseas borrowing and easier processes for branch opening.
Banking index of the BSE has shown 14% gain in September after a 30% during the period from April to August. The major contributors to this rise were ICICI with 20% increase and YES Bank with 27%. However, there are chances of the rally losing its pace according to the analysts. There are chances of the rally losing pace is because of the liquidity pressure, greater number bad loans, etc.