Bank Nifty soars more than 4 % on currency monetisation

All the banking stocks are trading with strong gains in Thursday's trading session owing to government’s clampdown on black money in the country. 500 & 1000 rupee monetisation is deemed to be a revolutionary step by the government.

Monetisation of currency notes will help the banks, as CASA ratio (current and saving account) balances would go up drastically from short-term to medium-term.

Advances of loan will also go up as banks would have a greater pool of resource to disburse loans and advances to customers. Margins would also expand further for the banks. This is a secular trend which would be witnessed in all the banking companies.

Reacting to this positive development on the part of banks, Nifty Bank index is trading with gains of more than 3.8 per cent to 20220.

Biggest gainers: -

Bank of Baroda- 8.1 %

Bank of India- 8 %

PNB- 7.8 %

SBI- 7.6 %

Yes Bank- 7.1 %