Small lenders gain; bank bill sparks M&A hopes
Reuters Market Eye - Shares in India's smaller private sector banks gain on hopes the banking amendment bill approved by parliament on Tuesday will spark consolidation in the sector.
The bill lays the groundwork for non-banking financial companies to win banking licences, sparking speculation they could look to purchase smaller lenders to expand their footprint in the sector.
"We think there is a high possibility that many of the new banks could consider acquiring older, smaller banks with large distribution networks such as Karnataka Bank, Federal Bank, etc," Bank of America Merrill Lynch said in a report.
Dhanlaxmi Bank (DNBK.NS) gains 3.4 percent, Karnataka Bank (KBNK.NS) gains 4.3 percent while Federal Bank (FED.NS) is up 4.4 percent.
- Tweet this
- Share this
- Digg this
- Analysis - Amazon's far-reaching ambitions, lack of profits, unnerve investors
- U.S. gasoline prices tumble on back of refinery cuts- Lundberg survey
- 'Lucy,' 'Hercules' beat expectations at U.S. weekend box offices
- U.S. diplomats' return to Libya could be more hazardous than exit
- Israel extends Gaza ceasefire for 24 hours, Hamas rejects terms
New Prime Minister Narendra Modi is facing criticism for remaining silent about incidents deemed anti-Muslim in the past week, underscoring fears that his Hindu nationalist followers will upset religious relations in the multi-faith nation. Full Article