Reserve Bank of India ’s (RBI) governor Shaktikanta Das today announced another round ofCOVID stimulus package worth ₹50,000 crore.- Indian banks – public, private as well as small finance banks – have responded positively to the announcement.
- Here’s a look at the top gainers among banks and small finance banks.
As part of the $4, RBI has allowed banks to lend money to hospitals, manufacturers, importers and sellers of vaccines, oxygen concentrators, medical oxygen and COVID drugs.
The banking sector – apart from the broader market – has responded positively to RBI’s stimulus package announcement.
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However, since then, the index recovered to trade 1% above its previous close of 32,270.
Here’s how the top 5 private and public banks have responded to the announcement:
Amongst small finance banks, Ujjivan has been the biggest gainer with a 3.3% uptick in its share price:
Some of the highlights of RBI’s announcement are:
- Banks can now create a separate COVID-19 loan book, and money borrowed from RBI for this purpose will be lent at 3.75%, instead of the current repo rate of 4%.
- Small finance banks can opt for additional funds of up to ₹10,000 crore to lend up to ₹10 lakh to each borrower.
- Micro, small and medium enterprises who have loans outstanding up to ₹25 crore can get them restructured.
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