Banking stocks were under pressure on Friday after the Finance Minister Nirmala Sitharaman announced 12 key measures, as part of Government of India’s stimulus to the economy, under AatmaNirbhar Bharat 3.0. At around 12.52 pm, Nifty Bank was trading 28,048.10 down 230.70 points or 0.82%. The index has tumbled to the day's low of 27,703.30.
On the index, underperforming stocks in percentage terms was led by IDFC First Bank, IndusInd Bank and
Federal Bank tumbling by more than 2% each.
HDFC Bank, SBI, Bandhan Bank and
PNB recorded over 1% plunge. While RBL Bank and Bank of Baroda recorded drop below 1%.
Axis Bank and ICICI Bank were marginally down.
Kotak Bank was the sole gainer on the index, however, only marginally up.
The Finance Minister announced a net stimulus of Rs2.65 lakh cr. While addressing the press conference on Thursday, Sitharaman added, the total stimulus announced by the Government and Reserve Bank of India till date, to help the nation tide over the COVID-19 pandemic, works out to Rs 29.87 lakh cr, which is 15% of national GDP.
Further, the FM extended Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes) till March 31, 2021.
Sitharaman said a Credit guarantee support scheme ECLGS 2.0 is being launched for the Healthcare sector and 26 stressed sectors with credit outstanding of above Rs50cr and up to Rs500cr as on 29.2.2020stressed due to COVID-19, among other criteria. Entities will get additional credit up to 20% of outstanding credit with a tenor of five years, including a 1-year moratorium on principal repayment. This scheme will be available till 31.3.2021.
Also, the Centre has announced a production linked incentive (PLI) scheme worth Rs1.46 lakh cr for 10 sectors to help boost the competitiveness of domestic manufacturing.