Bank Nifty soars 2% as investors mood upbeat on Budget outcomes; IndusInd, AU Small, Kotak, Axis Bank, HDFC Bank lift the rally

2 Feb 2022 , 02:09 PM

Banking stocks were on a bull run during Wednesday’s trading session as investors mood was upbeat after Union Budget 2022 outcomes. Except for ICICI Bank which traded on a flat, all other stocks listed on the Bank Nifty traded higher. The Bank Nifty index has gained by nearly 2%. In the latest Budget announcements, a host of features were announced for driving the digital economy.

At around 1.53 pm, Bank Nifty was trading at 39,126.35 higher by 620.85 points or 1.61%. The index has touched an intraday high of 39,281.40.

IndusInd Bank was the top bull skyrocketing nearly 5%. AU Small Finance Bank and Kotak Bank followed with 3.4% and 2.7%. RBL Bank and Axis Bank surged 2.6% each. IDFC First Bank jumped 2.5%.

Index heavyweight HDFC Bank rallied by over 2%.

Stocks like Federal Bank, Bandhan Bank, SBI and PNB traded broadly flat but in the green tone.

Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman proposed to introduce Digital Rupee, using blockchain and other technologies, which will be issued by the Reserve Bank of India starting 2022-23.

Sitharaman said that in recent years, digital banking, digital payments and fintech innovations have grown at a rapid pace in the country. The government is continuously encouraging these sectors to ensure that the benefits of digital banking reach every nook and corner of the country in a consumer-friendly manner. Taking forward this agenda, and to mark 75 years of our independence, the Finance Minister announced that it is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.

In another important announcement, the Finance Minister said that in 2022, 100 per cent of 1.5 lakh post offices will come on the core banking system enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also providing online transfer of funds between post office accounts and bank accounts. This will be helpful, especially for farmers and senior citizens in rural areas, enabling interoperability and financial inclusion.

The Finance Minister assured that the financial support for the digital payment ecosystem announced in the previous Budget will continue in 2022-23. This will encourage further adoption of digital payments. There will also be a focus to promote the use of payment platforms that are economical and user friendly, she said.