BSE Sensex closed at record high of 31,311.57 points as it jumps 255 points on Monday as lenders such as State Bank of India (SBI) gained after the RBI asked banks to start bankruptcy process against 12 large loan defaulters, raising hopes that reduction of bad debt will start to quicken. The Nifty NSE rose by 70 points, or 0.72%, to close at 9,658 points. The RBI urged lenders to initiate bankruptcy proceedings against a dozen companies, including Essar Steel, Bhushan Steel Ltd and Monnet Ispat and Energy Ltd, sources with direct knowledge of the matter said. The RBI said it had identified the 12 defaulters last week, but did not publicise their names. “There is a general feeling that non-performing asset (NPA) levels will come down after the RBI order to resolve NPAs of the country,” said R.K. Gupta, managing director at Taurus Asset Management. The Nifty PSU Bank Index gained as much as 0.79% , with top lenders State Bank of India (SBI) up as much as 0.7% and Canara Bank Ltd rising as much as 1.8%.
Story first published: Monday, June 19, 2017, 17:02 [IST]