Indian banks rise after RBI allows loans against foreign currency deposits

HDFC Bank

Yesterday 06:59

** Indian banks .NSEBANK and financials up 1.1% each, while private banks gain 1.4%
** Rise after Reserve Bank of India's move to boost foreign inflows by allowing banks to lend to non-residents against FX deposits
** Brokerage UBS says the move could support deposit and credit growth, with large lenders such as HDFC Bank HDBK.NS, ICICI Bank ICBK.NS and State Bank of India SBI.NS likely to be key beneficiaries
** HDBK up 2%, ICBK gains 2.5%, SBI up 0.2%
** Sentiment also supported by RBI Governor Sanjay Malhotra's comments to ET NOW that it is premature to discuss rate hikes at this stage
** Remarks ease concerns over a near-term tightening cycle and support expectations that funding costs may remain contained
** Since June 5, when the RBI announced measures to support the rupee and attract foreign inflows, the bank index .NSEBANK has climbed 6.3%, outperforming the 2.2% rise in Nifty 50 .NSEI

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))