India’s mid-cap private banks performed brilliantly and achieved double-digit gains in the June quarter. The market cap of Yes Bank increased by 40% and IDBI Bank by 35.8%. At the same time, big private banks also earned good profits.
New Delhi [भारत]July 16 (ANI): India’s mid-cap private sector banks have reported double-digit profits in the June quarter. According to the S&P Global Market Intelligence data report, all seven private banks among the top 20 banks with a market cap of less than Rs 1 trillion posted double-digit gains in the quarter ended June 30.
These mid-cap banks emerged as the biggest gainers during the broad stock market rally following the temporary ceasefire between Iran and the US.
Excellent performance of mid-cap banks
According to the report, “Yes Bank Ltd’s market cap rose nearly 40% quarter-on-quarter, while IDBI Bank Ltd’s gained 35.8%.” It was a recovery for IDBI Bank Ltd, which recovered from a 40 per cent decline in the previous quarter after the government halted its disinvestment process.
The data showed that Mumbai-based RBL Bank Limited entered the top 20 ranking after its market capitalization increased by 219 percent to Rs 571.5 billion.
Big private banks also recorded growth
Big private banks also registered growth. The market value of HDFC Bank Ltd, the country’s largest bank, increased by 9.13 per cent during the quarter. This increase comes after a 26 percent decline in the January to March period.
Meanwhile, ICICI Bank Ltd gained 14.19 per cent and regained its position as India’s second-largest bank by market cap, overtaking State Bank of India. Axis Bank Ltd and Kotak Mahindra Bank Ltd also registered growth of 15.9 per cent and 11.3 per cent respectively.
Performance of public sector banks remained lackluster
At the same time, the performance of public sector banks remained lackluster in this rally and most of them registered a gain of less than 10 percent. State Bank of India rose 4.85 percent, while Bank of Baroda Ltd gained nearly 10 percent. An increase of 6.1 percent was recorded in Punjab National Bank and 1.7 percent in Canara Bank.
Indian Bank was the only bank to decline in the top 20, with its shares falling 3.44 per cent during the quarter. Other public sector banks such as Indian Overseas Bank and Bank of India Ltd gained lower at 8.6 per cent and 2.5 per cent respectively.
The total market capitalization of the top 20 Indian banks stood at Rs 53,135.42 billion at the end of the June quarter, data from the report showed. (ANI)
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