SBI, Axis, HDFC, ICICI, & Other Banking Shares React To New Amendment Bill

The Indian parliament is currently in the middle of the Winter Session. Amid the series of disruptions, the Finance Minister, Nirmala Sitharaman, managed to get the Banking Laws Amendment bill passed in the lower house, Lok Sabha.

This bill, which was passed by voice vote, affects the administrative functioning of banks. These new amendments have been introduced to Section 24 of the Banking Regulation Act of 1949. As per these amendments, bank account holders will now have the option of having up to four nominees in their accounts.

Along with that, the bill also proposes changes, redefining 'substantial interest' for directorships. With this the limit will increase from Rs 5 lakh to Rs 2 crore.

Major banking shares have now reacted to these developments.

State Bank of India

The largest lender in the country, the publically owned SBI saw it shares dip, before jumping back in the green.

The shares of the bank rose by 0.23 per cent or Rs 1.95, in the early hours of the day's trade. This took the overall value to Rs 855.90.

HDFC Bank Ltd

The biggest private bank in the country, the Mumbai-based HDFC Bank also saw its shares increase in their value.

After beginning the day on a higher note than the previous closing, the shares, at the time of writing, increased by 0.67 per cent or Rs 12.15. This took the overall value to Rs 1,838.45.

ICICI Bank Ltd

ICICI Bank, another major private lender also had a relatively muted beginning to the day.

The shares of the bank which opened at Rs 1,302.60, increased to Rs 1,309.00, increasing in value by 0.05 per cent or Rs 0.60.   

Punjab National Bank

The Delhi-based Punjab National Bank also saw its shares uptick in green. The shares of PNB increased in value by 0.93 per cent or Rs 1.00.

This took the overall of the bank's shares to Rs 108.97 per share.

Axis Bank Ltd

Another major private sector bank, Axis Bank also saw its shares rise marginally in value.

Axis Bank shares rose by 0.0043 per cent or Rs 0.050, taking the overall value to Rs 1,160.55. 

In addition to the aforementioned changes, the bill also proposes an extension in the term of directors in cooperative banks from eight to ten years, with the exception of the chairman and full-time director.