Shares of Indian banks surged on continued hopes of RBI, government action to tackle bad debt.
The Nifty Bank index rose as much as 3.2 per cent to a record high of 23,267.80.
The bank index was the biggest contributor to gains in broader indices today.
Analysts said the sector is gaining on continued hopes of RBI, government action to tackle bad debt in the sector.
A media report on Thursday said India will sign pacts with 10 state-run lenders to inject fresh capital if they provide plans to reduce bad loans, citing finance ministry officials
State Bank of India and Bank of India rose as much as 2.9 per cent and 7.5 per cent respectively.
SBI shares gained 2.42 per cent or Rs 6.85 to end at Rs 290.
Bank of India shares closed 4.78 per cent higher at Rs 147.95.
Federal Bank surged 3.54 per cent to end at Rs 111.10.